How Much Do You REALLY Need to Have Saved at age 60 to Retire with $10,000 per month?!

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

💾 be sure to save for later 💾

⭐️ Here are the assumptions I’m using ⭐️

✅ 2 Spouses age 60 considering retirement at 62, 65, and 67

✅ Social Security monthly income values are $2,000/month at 62, $3,000/month at 65, & $4,000/month at 67

✅ 60% of retirement assets will be placed in an income annuity at 60 to maximize income at (some point) in the future

✅ 40% of their wealth will remain invested for inflation protection

✅ They will take 5% annual income withdrawals from the market on top of their annuity income (note: the guaranteed income from the annuity gives them the freedom to take a bit higher income withdrawal from the market, but they may have to reduce this withdrawal if the market doesn’t perform well in the early years of retirement)

✅ They either have no legacy goals or already have life insurance in place for a tax-free wealth transfer (so it’s not being considered in this analysis)

✅ They will stop saving at age 60 completely and earn 6% per year on all investments

⭐️ Retire at age 62 ⭐️

✅ $2,000 per month of social security income

✅ Need an additional $96,000 per year

✅ $2.4M total retirement savings needed using The 4% Rule

✅ Only $1.4M needed using an income annuity strategy

✅ $848k into annuity = $5,767/month of guaranteed income at 62

✅ $620k in the market at retirement (5% withdrawals) = $2,583/month

TOTAL: $10,350 per month of retirement income

⭐️ Retire at age 65 ⭐️

✅ $3,000 per month of social security income

✅ Need an additional $84,000 per year

✅ $2.1M needed using The 4% Rule

✅ $1.01M needed using income annuity strategy

✅ $606k into annuity = $5,312/month of guaranteed income at 65

✅ $541k in the market at retirement (5% withdrawals) = $2,254/month

TOTAL: $10,566 per month of retirement income

⭐️ Retire at age 67 ⭐️

✅ $4,000 per month of social security income

✅ Need an additional $72,000 per year

✅ $1.8M needed using The 4% Rule

✅ $760k needed using income annuity strategy

✅ $456k into annuity = $4,729 of guaranteed income at 67

✅ $457k in the market at retirement (5% withdrawals) = $1,904/month

TOTAL: $10,633 per month of retirement income

As you can see, following an annuity strategy to maximize your income allows you to retire with a LOT money less saved…

In fact it’s:

✅42% less for retirement at 62

✅52% less for retirement at 65

✅ and 58% less for retirement at 67

Let’s chat 💬😎