Their Financial Picture

• Doug & Carrie: both age 56
• 401(k)s: $250K each (both maxing out with an $8K annual employer match)
• Traditional IRA: $600K (Doug)
• Roth IRAs: $400K combined
• Social Security (age 62): $2,400/month (Doug) + $2,600/month (Carrie)
• Pension: $4,000/month for Carrie starting at age 60 (inflation-adjusted)
• Goal: $12,000/month in retirement income + $10,000/year in gifts to Emily

Step 1: Building the Income Plan

At retirement, their Social Security and pension would total about $9,000/month.

That left a gap:

• $3,000/month for their lifestyle, plus
• $10,000/year earmarked for Emily

➡️ The solution: Allocate $457K from their IRAs into an income annuity.

That single move filled both gaps with guaranteed, market-proof income — ensuring Doug and Carrie wouldn’t have to worry about market swings disrupting their retirement or their commitment to Emily.

With their core income needs secured, the rest of their wealth could stay invested for growth.

Step 2: Growth-Oriented Investment Strategy

By the time they retire at 62, Doug and Carrie are on track to have about $2M in total assets.

Because their income is protected, they can focus their investment portfolio on growth — but in a balanced, strategic way.

This dual-bucket approach (safety + growth) allows them to enjoy the upside of markets without putting their lifestyle at risk.

Step 3: Smart Tax Strategy

Tax planning is critical for long-term wealth.

For Doug and Carrie, the plan looked like this:

• Roth IRAs → Geared for long-term, tax-free growth
• IRAs/401(k)s → Positioned conservatively until gradually converted to Roth
• Annual reviews → Ongoing Roth conversion analysis based on income levels and tax law changes

The goal was simple: maximize tax-free wealth for the future.

The Results

With this plan in place, here’s what Doug and Carrie can expect:

• ~$17,000/month total income (about $13K of it guaranteed for life)
• ~$10M net worth at age 90 (assuming 8% market growth)
• The majority of that wealth positioned to pass to Emily completely tax-free

Of course, by the time they reach 90, they may not want or need a $10M estate.

That opens the door to:

• Increasing their retirement lifestyle spending
• Expanding annual gifts to Emily
• Or leaving behind a very generous legacy for their family and causes they care about ❤️

Final Thoughts

Doug and Carrie’s case shows that with the right mix of guaranteed income, growth, and tax planning, it’s possible to retire confidently while still supporting loved ones along the way.

The key is balance: securing today’s income while positioning tomorrow’s wealth for growth and efficiency.

For Doug and Carrie, the answer to their question was clear: Yes, you can retire at 62 — and yes, you can give Emily $10K a year without worry.

👉 Let’s Chat.