Investment portfolio
Income for the rest of the Pam and John's desires will come from their portfolio – both from income-generating products but also periodically withdrawing some of their assets.
Preparing for retirement
Conservative and semi-retired
Pam and John
Pam and John are a couple with a stable financial situation. They are conservative, long-term planners who are semi-retired.
| age | life stage | salary | total assets | occupation |
|---|---|---|---|---|
| John is 68 and Pam is 61 | Semi-retired | $20,000 | $1,000,000 | English Literature Professor |
Situation
Pam has been married for 35 years to her husband, John. John is a retired chef and he's currently working on his first novel, a mystery about a disappearing pilot.
Family
Pam and John have one child, Stephen, a graphic designer in Austin, TX.
Goal
Pam is semi-retired and still teaches one course per semester on medieval poetry, a passion of hers. She'd like to continue to teach as long as she is able.
Lifestyle
They are both relatively healthy although Pam has some arthritis in her knees.
Objectives
Pam and John prioritize their retirement objectives as follows:
1
Concern about running out of money while in retirement.
2
Avoid market fluctuations in favor of stability.
Concerns
Retirement risks that are of greatest concern to Pam and John:
Top concern
Withdrawal
Concern
Longevity
Concern
Inflation
Pam and John's income plan
Pam and John have specific financial needs in order to be able to achieve their overall retirement goals. The following is an estimated amount of annual income* Pam and John believe they will need to achieve their retirement goals.
Basic needs
Housing, food, healthcare, emergency fund.
See how its coveredOpens dialog
Lifestyle
Maintain lifestyle, annual literary conference, and travel to visit their son.
Legacy
Legacy is not a priority for Pam. Her son is financially stable on his own. She does get peace of mind knowing she has a buffer if times get rough. This buffer will be part of her investment allocation.
*Income needs in terms of after-tax income.
Pam and John's investment strategy
Fixed Annuity
Pam has been making contributions to her retirement plan since joining, and has savings in both a fixed annuity and a variable annuity.
Investment portfolio
Pam and John decide to move all of their remaining investment assets to a single provider so an advisor can manage their assets holistically throughout retirement. Their portfolio seeks to achieve growth above inflation, and it will generate dividend income from certain investments in their portfolio.
Resulting income
Hypothetical income approximations to maintain $66,000 of annual income
Displayed in real dollars to show how income maintains the customers' buying power throughout retirement (30-35 years). The composition of income received in retirement is purely hypothetical, for illustrative purposes only.
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