65-year-old Woman with $1M in Roth & Traditional IRA’s Wants to Retire Immediately with $90k/year

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

💾 be sure to save for later 💾

⭐️ Here are the details ⭐️

✅ Caitlin is 65

✅ She needs $90k/year of retirement income to feel comfortable (beyond her social security income)

✅ She has $1M in a traditional IRA (and $1M in a Roth IRA)

✅ She has no children so doesn’t need any life insurance

✅ She wants to be sure to minimize taxes

✅ She bought long-term care insurance years ago

✅ She will get $3100/month from social security (but might delay)

⭐️ Step 1: Create Guaranteed Income ⭐️

✅ $90k/year of immediate guaranteed income costs about $1.2M

✅ We will split this income into 2 income annuities

✅ One using the Roth IRA & one with the Traditional IRA

✅ $71,110 will only be taxed at 12% = $8,532 in annual federal tax

✅ $47,490 will only be taxed at 22% = $10,448 in annual federal tax

⭐️ Step 2: Select Carrier ⭐️

✅ We took the company offering the 2nd highest income

We did this because that company offers MUCH higher indexing on the annuity income (and a very competitive income).

This gives her most opportunity to grow and preserve the true value of her annuity even while she is taking income!

⭐️ Step 3: Mitigate Taxes ⭐️

✅ $848k went into the Traditional IRA annuity

✅ $353k went into the Roth IRA annuity

This gives her approximately $42,900 of tax-free income.

And leaves her paying only a 6.03% annual tax rate in retirement.

Let’s chat 💬😎