Cover Your Basic Expenses: Protected Lifetime Income For Essential Expenses
CASE STUDY: MARRIED WORKING COUPLE
- Lives in Texas
- $600,000 in assets
- 65 years old
- Ready to retire
EXPENSES BASED ON TEXAS AVERAGES AND ASSUMPTIONS
- Mortgage: $12,000 ($1,000/mo)
- Utilities and Home Maintenance Cost: $14,000 ($1,167/mo)
- Average Annual Groceries Cost: $6,000 ($500/mo)
- Average Health Insurance Cost: $6,000 ($500/mo)
- Average Transportation Spending: $5,000 ($417/mo)
- Owners of Two Horses: $7,000 ($583/mo)
TOTAL BASIC EXPENSES: $50,000 ($4,167/mo)
Joint Social Security: $40,800 ($3,400/mo)
SHORTFALL: $9,200 ($767/mo)
ADD AN ANNUITY TO COVER YOUR BASICS
If they purchase an annuity for $200,000 (33% of their assets), it could generate a protected lifetime income of $9,821 annually ($818/mo).1 This purchase will cover their BASICS but still leave them $400,000 to generate probable income to pay for other expenses. Their BASICS will be met. They can stay in their house, buy groceries, have transportation and participate in a hobby they are passionate about. And it’s all protected.