Step 1: 50/50 Safety + Growth Strategy

The first move was to divide their retirement portfolio evenly between safety and growth.

• $750,000 from the SEP IRA is rolled into an indexed annuity with an 8.5% guaranteed income growth rate until they start taking payments.
• This protects 50% of their portfolio against market losses.
• The remaining 50% stays invested in the market for long-term growth, with ongoing 401(k) contributions to boost their balance.

This approach creates income security right now, while still giving their investments room to grow.

Step 2: Retirement Income Plan

Here’s what their guaranteed income will look like starting at age 62:

• $5,569/month — Guaranteed income from the annuity
• $4,600/month — Social Security (combined)
• $1,800/month — Rochelle’s pension

That’s about $12,000/month of guaranteed lifetime income, with:

• No market risk
• No income worries during market downturns

Step 3: Flexibility + Extra Income

Even after creating $12,000/month in guaranteed income, Gary and Rochelle will still have $1.3 million+ invested.

They plan to:

• Withdraw $7,500/month, adjusted for inflation each year
• Expect the portfolio to last until at least age 94, based on conservative projections

This flexibility means they can:

• Spend more in the early years
• Dial back later if markets underperform
• Increase gifting or travel if markets do better than expected

The Final Plan

• Total income at 62: ~$19,000/month
• Portion guaranteed: ~63%
• Market-proof: 100% of essential income
• Lifestyle: Early retirement and more time traveling with family

Result: A retirement plan that offers safety, growth, and flexibility — without sacrificing the experiences they value most.

The takeaway:
By securing the income needed to cover all essentials, you can invest the rest with confidence — knowing that market swings won’t derail your retirement dreams.

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