The Core Income Plan

• $6,200/month — Social Security (combined)
• $2,000/month — Inflation-adjusted pension
• $7,000/month — Guaranteed income annuity
• $8,167/month — Portfolio draw (7% of $1.4M in investments)

Total: $23,367/month

This plan alone would be impressive.

But what makes it truly smart is the layer of protection they’ve added.

The Guardrail Strategy

Amber and Devin’s portfolio is designed for aggressive spending — but with clear guardrails to protect them if things take a turn.

Here’s how it works:

• If their portfolio drops more than 20% in a year → They temporarily cut portfolio withdrawals.
• If long-term projections show more than a 75% chance of depletion before age 95 → They cut back further until projections improve.
• If the market performs exceptionally well → They increase spending on travel, experiences, and family gifts.

This means they can enjoy their money now — while still protecting their future.

Real-Life Examples of Guardrails in Action

• Year 4: A market crash causes a 25% drop in portfolio value. They reduce withdrawals by 25% for the year.
• Year 9: Retirement projections show an 80% chance of running out of money before 95. They pause annual gifts to their kids for two years.
• Year 12: Portfolio exceeds $2M. They increase gifts to $15k/year for each child and take the grandkids to Europe.

Built-In Generosity & Legacy

Amber and Devin aren’t just planning for themselves.

They’ve committed to gifting $10,000/year to each of their two kids for life.

And when they’re gone, a paid-off $1.1M home will pass to their family — guaranteed.

Why This Works

Their guaranteed income sources (Social Security, pension, annuity) cover all the essentials.

This means their investment portfolio is purely for lifestyle upgrades, travel, gifting, and legacy goals.

When markets are strong, they enjoy the upside.

When markets are rough, their guardrails keep them from making costly mistakes.

The Math Behind the 7% Withdrawal Rate

At first glance, withdrawing 7% of a portfolio every year might seem dangerously high.

But here’s why it can work in this scenario:

1. Guaranteed Base Income — With $15,200/month locked in from Social Security, a pension, and annuity, their essential expenses are covered without touching the market.
2. Portfolio for Discretionary Spending — The $8,167/month draw is for travel, gifts, and extras. If the market takes a hit, they can cut back without jeopardizing their lifestyle.
3. Guardrails Prevent Sequence Risk — The spending adjustments based on market performance and long-term projections keep the portfolio from spiraling during down markets.
4. Flexibility with Inflation — Because much of their guaranteed income is inflation-adjusted, they don’t need to push the portfolio to keep pace with rising costs.
5. Legacy Is Separate — Their home forms the core of their estate, which means portfolio depletion wouldn’t erase their ability to leave wealth to their heirs.

In short, this isn’t a reckless 7% rule.

It’s a strategic, monitored, and adjustable withdrawal plan supported by a strong foundation of guaranteed income.

The takeaway:
If most of your core retirement income is guaranteed, you can afford to be more flexible (and even more aggressive) with your portfolio withdrawals — as long as you have a disciplined system for pulling back when needed.

Would you feel comfortable withdrawing 7% per year from your portfolio if the rest of your income was locked in?

Let’s Chat.