53-year-old Man Needs to Average 13.922% Per Year to Beat an Income Annuity in Retirement

(don’t forget to checkout the video of this case study)

💾 be sure to save this one for later 💾

⭐️ Here are the details ⭐️

✅ Rodney is 53 & wants to retire in 10 years

✅ He has $1.6M in IRAs

✅ He likes the idea of guaranteed income but thinks the stock market is better (with more income potential)

✅ He will collect about $3,000/month from social security at 63

✅ He thinks he needs about $12,000/month to retire comfortably

✅ He wants 50% of his money to remain very flexible

⭐️ Option 1: Use an Insurance Company for Guaranteed Income ⭐️

Rodney is open to learning about the possibility of using an income annuity for some retirement income.

Taking 50% of Rodney’s IRA money & shopping for the highest, guaranteed income value on the market yields the following:

✅ $800k into an income annuity will be worth a benefit value of about $1.8M in 10 years

At age 63, he will then have a 6.36% guaranteed income payout rate.

This yields a guaranteed $117,820 per year for the rest of Rodney’s life!

⭐️ Option 2: Use the Market to Beat the Income Annuity ⭐️

Rodney knows about the 4% rule but still thinks the market could outperform an income annuity 🫣

Let’s compare $800k instead invested in the market (rather than in an annuity).

✅ To generate $117,820 per year of income with a 4% withdrawal he needs $2,945,500 in 10 years❗️

This means that for the next 10 years Rodney has to average 13.922% per year in the market…

Just to be able to generate the same level of income as the income annuity in retirement.

That income is NOT Guaranteed either.

So the real question is this….

⭐️ What if Rodney does NOT average 13.922% for the next 10 years leading up to retirement⁉️⭐️

What does his retirement look like then⁉️

If he can position himself for a stress-free retirement now, with no market risk, why wouldn’t he⁉️

Let’s chat 💬😎