Cover Your Basic Expenses: Protected Lifetime Income For Essential Expenses

CASE STUDY: RETIRED WOMAN

  • Lives in Florida
  • 70 years old
  • $400,000 in assets

EXPENSES BASED ON FLORIDA AVERAGES AND ASSUMPTIONS

  • Rental in Florida: $11,220 ($933/mo)
  • Utilities: $3,000 ($250/mo)
  • Annual Groceries Cost: $2,800 ($233/mo)
  • Health Insurance Cost: $5,500 ($458/mo)
  • Transportation Spending: $2,200 ($183/mo)

TOTAL BASIC EXPENSES: $24,700 ($2,058/mo)

Social Security: $18,600 ($1,550/mo)

SHORTFALL: $6,100 ($508/mo)

ADD AN ANNUITY TO COVER YOUR BASICS

If she purchases an annuity for $100,000 (25% of her assets), it could generate protected life- time income of $6,211 ($517/mo).1 She will cover her BASICS so she doesn’t have to worry about her current basic living expenses, and she still has $300,000 in probable income to withdraw to pay for other expenses.

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