62-year-old Couple Retires With 45% More Income Using Income Guardrails‼️

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

💾 be sure to save for later 💾

⭐️ All the details ⭐️

☑️ Mike & Carol are 62

☑️ Social Security will provide them with $3,500/month at 62

☑️ 40% of portfolio will be used in a fixed indexed annuity

☑️ 60% of portfolio will stay invested in the market for long-term growth

☑️ They have a total of $1.2M in pre-tax retirement accounts

☑️ They have $200k in cash

☑️ $10,000/month is their Retirement Income Goal (but they’re ok with being flexible — depending on the performance of the market)

⭐️ What Are Income Guardrails?! ⭐️

☑️ “Flexible” portfolio income allows a 5.4% annual withdrawal (rather than relying solely on The 4% Rule)

☑️ A 20% upper guardrail prevents not spending enough

☑️ 20% lower guardrail prevents spending too much from market

☑️ Guardrails will trigger a 10% increase/decrease in portfolio income

☑️ Goal is for portfolio to have approximately 65% equities

This strategy allows about 35% more portfolio income than the 4% rule (just from the market)

+ The Income Annuity allows for additional spending and another source of guaranteed income for life

⭐️ Scenario 1: Baseline Retirement Income ⭐️

☑️ $3,500/month of Social Security Income

☑️ $2,980/month from Annuity (guaranteed for life)

☑️ $3,690/month from market (portfolio income)

☑️ Total = $10,170 per month

⭐️ Scenario 2: Lower Guardrail Income ⭐️

Portfolio down 20% -> Portfolio Income lowered 10%

☑️ $3,500/month of Social Security Income

☑️ $2,980/month from Annuity

☑️ $3,321/month from market (portfolio income)

☑️ Total = $9,801 per month

⭐️ Scenario 3: Upper Guardrail Income ⭐️

☑️ $3,500/month of Social Security Income

☑️ $2,980/month from Annuity

☑️ $4,059/month from market (portfolio income)

☑️ Total = $10,539 per month

🔥 Between the annuity and the Income Guardrail Strategy they have raised their income withdrawal rate to 5.8%‼️

This is 45% more income than The 4% Rule would allow‼️

This gives them additional spending when the market does well…

But also protects them from over-spending when the market does poorly…

Truly a risk-management strategy that allows for more safe spending in retirement.

Let’s chat 💬😎