Investment portfolio
Income to maintain Al and Sarah's lifestyle will come from their investment portfolio. The portfolio contains income-generating products that will allow periodic withdrawals.
Preparing for retirement
The long-term planners
Al and Sarah
Al and Sarah are a couple with a stable financial situation. They are conservative, long-term planners who are nearing retirement.
| age | life stage | salary | total assets | occupation |
|---|---|---|---|---|
| Al is 63 and Sarah is 60 | Planning for retirement in the near future | $400,000 | $3,000,000 | Internal Medicine Surgeon |
Situation
Al has been married to his wife Sarah for 28 years. She stayed home with the children and now volunteers.
Family
Al and Sarah have three children, and four grandchildren. Maintaining close relationships with their grandchildren is extremely important to them.
Goal
Al and Sarah are nearing retirement and are looking for guaranteed, stable income.
Health
They are both healthy and longevity runs in their family. In fact, Al and Sarah each have a parent still alive.
Objectives
Al and Sarah prioritize their retirement objectives as follows:
1
Live comfortably in retirement and maximize their legacy.
2
Avoid market fluctuations that will negatively impact their lifestyle.
3
Ensure Sarah is financially secure if Al passes away first.
Concerns
Retirement risks that are of greatest concern to Al and Sarah:
Top concern
Market
Concern
Longevity
Concern
Inflation
Al and Sarah's income plan
Al and Sarah have specific financial needs in order to be able to achieve their overall retirement goals. The following is an estimated amount of annual income* Al and Sarah believe they will need to achieve their retirement goals.
Basic needs
Housing, food, healthcare, emergency fund.
See how it's coveredOpens dialog
Lifestyle
Maintain lifestyle, support for elderly parents, family vacation annually.
Legacy
Leaving a large legacy to their children and grandchildren is a High Priority for Al and Sarah. That's why they elected a fixed annuity to receive a guaranteed benefit and have an investment allocation that will help maximize how much they will leave their children.
*Income needs in terms of after-tax income.
Al and Sarah's investment strategy
Fixed annuity
Al contributed to a fixed annuity during his working years. This will allow him to generate guaranteed lifetime income.
Investment portfolio
Al and Sarah's investment portfolio is composed of their assets from a brokerage account, IRAs and Al's 403(b) plan.
Resulting income
Hypothetical income approximations to maintain $150,000 of annual income
Displayed in real dollars to show 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.
1332706-a