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.

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