Retired Couple Needs Supplemental Income for 5 Years to Maximize Spousal Social Security Benefit

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

💾 be sure to save for later 💾

⭐️ Here are the details ⭐️

✅ Monica is 62 & Chandler is 67

✅ Chandler is collecting $3,500/month from Social Security

✅ Monica wants to wait until 67 to collect the 50% Maximum Spousal Benefit from Social Security

✅ They have $5,000/month of pension income

✅ They have $1,500/month from dividend stocks

✅ They have $400k in a deferred income annuity IRA (they will activate in 5 years)

✅ They have $650k in Monica’s 401k

✅ They need an additional $2,000/month until Monica’s SS income begins (in 5 years)

⭐️ Step 1: 5-years Supplemental Income + Principal Protection ⭐️

✅ We will use Monica’s 401k in a Fixed Annuity at 5.8% for 5 years (since the rate is higher than CD’s currently)

✅ $415k will generate a guaranteed income of $2,000/month for 5 years

✅ At the end of 5 years they will get the full $415k back (contractually guaranteed)

⭐️ Step 2: Monica Maxes Out the Spousal Benefit for Social Security ⭐️

✅️ Since Monica waited until her full retirement age she gets the maximum spousal benefit

✅️ This provides them with an additional $1,750/month of retirement income

⭐️ Step 3: Activating Lifetime Income Annuity ⭐️

✅️ The income annuity will guarantee $3,623/month for life (for both)

✅️ They’re getting almost 11% per year by allowing this income to grow for 5 years!

✅️ This will be an income source that they can never outlive

⭐️ Final Results ⭐️

✅ Total lifetime income = $15,373/month

✅ ➕ $415,000 from the 5-year fixed annuity

✅ ➕ approximately $345,000 from the remainder of Monica’s 401k (left in the market)

So $12,000/month for the first 5 years…

🔥Then an income raise to $15,373/month for life in 5 years + $760,000 to spend how they choose 🔥

Seems like a pretty stress-free way to enjoy retirement to me.

Let’s chat 💬😎