64-year-old Couple with $800k — Retire Now or Wait 3 Years?!

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

💾 be sure to save for later 💾

⭐️ Here are the details ⭐️

✅ Darren & Leah are 64

✅ They want to compare retiring now vs. waiting 3 years

✅ Their Social Security Income is $5,000/month if they wait until 67

✅ They have $800,000 in combined 401k dollars

✅ Their retirement income goal is $9,000/month

✅ They each max out their 401k annually

⭐️ Retire Now ⭐️

✅ Their social security will be discounted to $4000/month

✅ $400k into an income annuity will generate $2,607/month

✅ Taking a 5% withdrawal from the market = $1,667/month

This brings their total retirement income to $8,274/month

There’s also about a 50% chance that their money in the market won’t last all the way through retirement at a 5% withdrawal (this is because the timing of market volatility matters much more when you start withdrawing income)

So, what if they wait 3 years⁉️

Does it make that much of a difference⁉️

⭐️ Retire in 3 years ⭐️

✅ They will collect the full $5,000/month from social security

✅ $400k in the annuity will grow to a guaranteed $3,165/month

This an extra $1,558/month of guaranteed, lifetime income!

Plus, their remaining $400,000 in the market would have grown to about $709,000…

Leaving them an extra $309,000 of additional funds to spend however they choose in retirement.

This means they can create an extra $2,954/month (if they withdraw 5% per year).

OR….

They can take a 4% withdrawal instead of a 5%….

This lowers the supplemental income to $2,363/month.

But, their total retirement income is still $10,528/month.

Plus they leave themselves MUCH MORE likely to be able to retire comfortably….

And MUCH MORE likely to leave money to their loved ones (by taking only a 4% withdrawal from the market).

Let’s chat 💬😎