Meet Gary & Debbie

• Both age 61
• Still working and maxing out their 401(k) contributions
• $800,000 each in their 401(k) plans
• $500,000 in a Roth IRA (targeted for long-term growth)
• $200,000 deferred compensation payout coming at 65
• Long-term care insurance already secured
• Social Security at 67:
• Gary: $3,200/month
• Debbie: $3,400/month

Their biggest goals?
 ✔️ Predictable, lifelong income
 ✔️ Spend more in the early, active years
 ✔️ Protect against market crashes
 ✔️ No legacy planning — “we want to enjoy the money ourselves”

Strategy 1: Lock in a Safety-First Income Base

To protect against market volatility and sequence-of-return risk, we implemented a guaranteed income strategy:

• Rolled $1M from their 401(k)s into a market-proof IRA annuity
• Income base grows at 8.5% annually, guaranteed
• At age 67, this generates $110,000/year of lifetime income
• That income is market-independent, tax-efficient, and guaranteed for both lives

This gave them:

• A strong income floor
• Peace of mind, knowing that a large portion of their spending was locked in regardless of market conditions
• Protection from early-retirement downturns

Strategy 2: Maximize Market-Based Spending

With $1.6M+ still invested between their Roth, 401(k)s, and deferred comp payout, we structured a maximum drawdown strategy for the next 25–30 years.

• Their market portfolio is positioned for growth + withdrawals
• It’s designed to aggressively fund lifestyle goals like travel, dining, and experiences
• Expected to generate up to $8,000/month, adjusted for inflation
• Projected to last through age 90 even with withdrawals

This allows them to spend more while they’re young and active, without sacrificing security in their later years.

Projected Results

📊 Ages 65–90:

• $24,000–$33,000/month in total retirement income
• $16,000/month guaranteed from annuity + Social Security
• ~$8,000/month from market-based withdrawals

✈️ Enough to:

• Travel freely
• Help adult children (if needed)
• Renovate the house
• Say “yes” to the things they enjoy most

🛡️ Age 90+:

• Even if the market portfolio hits $0, they’ll still receive $19,000/month for life
• Plus long-term care coverage if health declines

Key Takeaways: How to Maximize Your Own Retirement Spending

1. Know your goals. If legacy isn’t a priority, your plan should reflect that.
2. Build an income floor — secure enough guaranteed income to cover your needs for life.
3. Invest the rest for growth. Don’t be afraid to spend down your market assets if you have a safety net.
4. Sequence-of-return protection matters. Lock in income that doesn’t fluctuate with the market.
5. Time your spending. Spend more when you’re young and healthy — front-load your lifestyle while you can enjoy it.

Final Thought: Retirement Is Meant to Be Enjoyed

Gary and Debbie didn’t want to tiptoe through retirement.

They wanted to spend boldly, knowing that no matter what happens in the market, their income — and lifestyle — were protected.

That’s the power of safety-first planning with a clear spending strategy.

Want a plan that helps you spend with confidence and sleep well at night?

Let’s talk.