60-year-old Couple with $500k — Immediate Income, Deferred Income, or Interest-only Income?!

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

💾 be sure to save for later 💾

⭐️ Here are the details ⭐️

✅ Meghan & John are 60

✅ They have $500k they want to use for retirement income

✅ They don’t want to take any risk with this money (which allows their other money to stay invested more aggressively for long-term growth)

✅ They want to explore income options

✅ They want to use high interest rates to create guaranteed income

✅ They have a comfortable income from Social Security that they will delay

✅ They about $1.3M in the market that they will invest passively (and use as-needed in retirement)

⭐️ Option 1: $500k into Immediate Lifetime Income ⭐️

✅ This will be the highest source of immediate income

✅ This will generate $35,962/year of guaranteed income for life

✅ The payout rate is approximately 7.2% per year (immediately)

✅ Upside: Maximum immediate, lifetime income

❌ Downside: Maximum income withdrawals will likely diminish principal (although that’s usually the intent)

⭐️ Option 2: $500k into Interest-only Income ⭐️

✅ $500k into a 5-year annuity currently pays 5.8% per year

✅ This will generate $29,000 per year of supplemental income

✅ In 5 years that $500k can buy a lifetime income annuity

✅ This will generate $39,900/year of guaranteed income

✅ Upside: Income now + Preservation of Principal for future opportunities

❌ Downside: Guaranteed for a short time (& only works with high interest rates)

⭐️ Option 3: $500k into Deferred Lifetime Income ⭐️

✅ This will be the highest source of future income

✅ This will generate $52,596/year of guaranteed income for life in 5 years

✅ Upside: Maximize future income + guaranteed for life

❌ Downside: No income immediately

As you can see there are a variety of tools and ways to structure guarantees in retirement.

Especially as it relates to retirement income (like I illustrated in this full income analysis).

What’s most important is to determine what YOUR objectives are⁉️

Income Now❓

Income Later❔

Or a bit of bit of both⁉️

Let’s chat 💬😎