🧾 The Financial Snapshot

Tom & Lisa, Age 64

• Tom sold his engineering firm for $1.1M earlier this year
• They had $1.3M in a 401(k)
• Proceeds from the business sale plus other funds gave them $3.1M in a taxable investment account
• Tom’s Social Security at age 70: ~$4,600/month
• Lisa’s spousal benefit at 70: ~$1,900/month
• Goal: Secure $15,000/month in income while continuing to grow wealth for children and grandchildren

✅ Step 1: Short-Term Portfolio Withdrawals (A Strategic Bridge)

From age 64 to 70, Tom and Lisa will draw ~6% annually (plus inflation) from their portfolio to meet their full income needs.

This does two things:

• Buys them time to delay Social Security and lock in maximum future benefits
• Allows them to spend freely in the early years of retirement, while they’re healthiest and most active

Even though their portfolio will dip slightly over this period, it’s a planned reduction — with significant upside in the years ahead.

✅ Step 2: A $600,000 Deferred Income Annuity (Guaranteed Future Income)

Next, they allocated $600,000 of 401(k) assets into a deferred income annuity (inside an IRA). Here’s why:

• They received a $120,000 income bonus just for funding the contract
• The annuity then grows guaranteed at 8% annually for income purposes
• At age 70, they will begin receiving $69,797/year of guaranteed income (a 6.55% payout rate)

This annuity also helps satisfy Required Minimum Distributions (RMDs) from their IRA — a huge tax and compliance benefit.

✅ Step 3: Social Security + Annuity = Income Foundation for Life

By age 70, Tom and Lisa’s income strategy kicks into full gear:

• $69,797/year from annuity income
• $78,000/year from Social Security combined
• Total: $147,797/year guaranteed, or roughly $12,316/month

At this point, their investment portfolio is still worth ~$3.6M, and they’ll only need to withdraw an estimated 2.6% annually to meet the remainder of their $15,000/month lifestyle goal (adjusted for inflation).

🔥 The Results: Predictable Income + Ongoing Wealth Growth

Why is this so powerful?

• ✅ Most of their income is now guaranteed for life
• ✅ Their portfolio withdrawal rate is extremely low, increasing sustainability
• ✅ They can invest more aggressively for long-term growth
• ✅ They’re positioned to leave a larger, tax-efficient legacy
• ✅ They’ve created flexibility, freedom, and peace of mind

This is what a “hybrid retirement income plan” looks like in action:

A smart blend of guaranteed income sources, market growth potential, and tax-conscious withdrawals.

Final Thoughts

Tom and Lisa didn’t just retire.

They engineered a strategy that delivers income today, growth tomorrow, and a legacy for the future.

If you’re approaching retirement and wondering how to build an income plan that protects your lifestyle and continues to grow your wealth…

Let’s chat — and start building your custom blueprint.