fbpx

How Tom & Becky Solved Their Retirement Income Math Problem

by | Feb 5, 2024 | Blog

Tom, age 60, an electrical engineer for a Phoenix area high tech firm, went to work right out of college. He  began contributing to his 401(k), reaching a value of approximately $950,000. No pension was offered.

Because he is retiring in the next few years, he has become very concerned about market volatility. He lived through the 2008 crash and realizes that had that happened right after retiring, it would have been a disaster. Some of his friends have pensions, but not Tom. Many of his friends also have an annuity. He wanted an annuity but not one that would relinquish control of his principal or have high fees.

They Recognized The Need For A Plan

Becky, age 57,  is a retired elementary school teacher who took time out to raise their two kids.

Even with that time away, she was able to put together a 403(b) account of approximately $151,000 and has a state pension that will pay her about $12,300 per year for life. Her Social Security income is also approximately $12,000 annually.

The couple is building a second home in Prescott, where they may one day choose to move, perhaps selling their primary residence. They are planning an active retirement with traveling, visiting family, and hobbies.

They spend approximately $92,000 annually on the basics of life with some entertainment and travel.

The REAL Challenge: Their Lifestyle  Costs More Than Their Projected Income

The math is simple: If you spend $80,000 annually on the basics of life, and one spouse is in her 50s, you may need sources of reliable income for 30 years—but she may need the income for 40+ years.

$80,000 x 30= $3.2 million (without inflation.) 

If you spend $120,000 annually:  30 years = $3.6 million, 40 years = $4.8 million.

They were worried. They needed a plan. We were able to help.

Q. Do you have a written, guaranteed plan for income, including Social Security, totaling $3 million to $4 million over the next 30 to 40 years?   Our clients do. We create 6 figure retirement incomes that are reliable, guaranteed, and inexhaustible.

Recent Blogs

Recent Podcasts

Free Retirement Review

  • 401k & IRA Rollover
  • Fixed Income
  • Investment Portfolios
  • Retirement Bucket Planning

Our Services

401k & IRA Rollover

We help you turn your 401k, 403b, 457, ESOP, TSP, or IRA into a true retirement plan.

Retirement Annuities

We compare up to 1200+ annuities to determine the right fit for our clients’ income, preservation, and diversification goals.

Investment Portfolios

Explore the IQ Wealth® Growth Portfolios: Fee-only, rules-based, disciplined, visionary. See how our investment approach works to grow wealth and complement a rock solid retirement plan.

Bucket Planning

Rather than a tired and old-fashioned “pie chart” approach to retirement planning, we enlist the use of Bucket Planning to better secure our clients’ future.

Listen to Mastering Money on Money Radio

Guests Have Included:

Gary Kaltbaum
iPhone Image

Listen To Mastering Money Wherever You Go!

Download the free MASTERING MONEY™ app - Get it from the App Store or on Google Play, search for "Mastering Money" or tap the link below.

About IQ Wealth®

At IQ Wealth, we believe smarter planning is the key to a more trouble-free retirement. Our unique process, Smarter Bucketing™ helps our clients simplify and clarify their finances. Bucket planning is a common-sense system of allocating money according to its purpose. When each dollar in your portfolio has a job to do—and a timeline for getting it done—your financial plan is more clear and realistic.

Today’s crazy markets are leaving many folks wondering where and how to allocate their money. Rather than placing faith in the whims of the market, the IQ Wealth approach is clearly defined and systematic. Our fee-only approach to equity management means that when YOU do better, we do better. Your best interests always come first at IQ Wealth–no exceptions, no excuses. Learn how our systematic approach to high quality dividend growth and technology stocks alongside guaranteed fixed income solutions may contribute to your future success. It's opportunity time. Let’s get to work!

Steve Image
Steve Jurich

Schedule a Meeting

Use this form to begin scheduling your office meeting or 15 minute phone call.

IQ Wealth Management® - Annuity Authority & Investment Manager - Scottsdale, AZ

Retirement
Review

Step 1
Fill out the form.

Step 2
We'll contact you to schedule.