Summary

Veronica, a 59-year-old with $900,000 in investments and a future pension, aims to retire with a tax-free, risk-free$ 9,000/month income within 8 years through strategic financial planning.

Abstract

Veronica, at 59, is planning for retirement and seeks to ensure a monthly income of $9,000 without taking any investment risks or relying on market returns. She has a total of$ 900,000 from her 401k and investment account, along with a pension that will provide $1,000/month starting at age 65 and Social Security benefits of$ 2,500/month beginning at age 67. To achieve her goal, Veronica's strategy involves moving 60% of her investments into a deferred income annuity, which will immediately add $54,000 to her income value and grow at a guaranteed 7% annually until it generates$ 5,800/month for life starting at age 67. The remaining 40% of her assets are expected to grow to $574,000. Additionally, a tax-free strategy is employed by investing$ 200,000 into a fixed interest vehicle yielding 6.15% annually, with the interest covering the costs of Roth conversions, allowing her to convert her income account to a Roth IRA for a tax-free retirement.

Opinions

The author suggests that Veronica's aversion to market risk is addressed by the proposed financial strategy.
The strategy emphasizes the importance of guaranteed income streams in retirement planning.
The use of a deferred income annuity is presented as a way to secure a predictable retirement income.
The approach of converting to a Roth IRA is seen as a method to minimize tax liabilities in retirement.
The case study implies that strategic financial planning can lead to a comfortable, tax-free retirement without market exposure.

59-year-old Wants to Take NO RISK & Retire Tax-free in 8 Years with $9,000/month (can she do it?!)

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

⭐️ Case Study Details ⭐️

✅ Veronica is 59

✅ She has a small pension that will pay her $1,000/month at 65

✅ She wants at least $9,000/month of guaranteed income

✅ The market makes her nervous so she doesn’t want ANY money in the market

✅ She has $500k in a 401k & $400k in an investment account

✅ She already has long-term care

✅ She has $2,500/month of social security starting at age 67

⭐️ 60% Income Maximization Strategy ⭐️

✅ We will move 60% of her investments into a deferred income annuity ($540k)

✅ She will immediately get $54k added to the income value of that account ($594k)

✅ It will grow at a guaranteed 7% per year until she turns on the income

✅ At 67 the account will be worth $1.02M & will produce $5,800/month of guaranteed income for life

✅ The remaining 40% of her assets will grow to approximately $574k

⭐️ Results at age 67 ⭐️

Veronica has $9,300/month of guaranteed income + $574,000 of flexible spending money in retirement 🤯

⭐️ Bonus Tax-free Strategy ⭐️

✅ We also put $200k into a fixed interest vehicle paying 6.15% per year

✅ The interest from this money paid 100% of the cost of roth conversion (no risk)

✅ She was able to convert the ENTIRE income account over to a Roth IRA

✅ This enabled her to achieve her a goal of a tax-free retirement as well

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Enjoy this blog? You’ll probably enjoy this one as well: Patience Pays up to 76% with Social Security (plus, how to collect it tax-free)

To your success,

Matt