Retirement income calculations with guaranteed products (Part 3 of 3)

2. For more, visit http://personalifnanicalplanning.ca

71. For more, visit http://personalifnanicalplanning.ca Alternatively, instead of optimization by software (resulting in her spending of $270,105 on annuity), we can calculate how much would buy exactly $12,000 per year, i.e. $1,000 per month. $100,000 buys $350/month, … so she would need to spend $285,714 on the inflation-indexed annuity for full income (but not more) coming from annuity, leaving $14,286 completely to grow. Going into such details is unnecessary, even misleading.

72. For more, visit http://personalifnanicalplanning.ca Or, she could spend all the $300,000 on the annuity and get $12,600 annual (inflation-indexed) income for life. He could get $13,896 (i.e. $1,296 more) because his shorter life expectancy.

75. For more, visit http://personalifnanicalplanning.ca 45/55 (within 25%) 100% non-indexed annuity 45/55 (of $41,426) 75% non-indexed annuity Inflation-indexed annuity for $258,374 15% equity/85% fixed inc. 45% equity/55% fixed inc. 45/55 (within 20%) (optimal w/o guaranteed 10% non-indexed annuity product/s) 70% GMWB –> PAT reco. 70% equity/30% fixed inc. 30% equity/70% fixed inc. 85% equity/15% fixed inc. (‘current’) Chance of having various levels of planned income at various ages $13,000/yr targeted Male, 60, retiring now Strictly from retirement income point of view. (Cash/liquidity & estate aspects disregarded) Same security for female can be achieved at somewhat lower income only

Retirement income calculations with guaranteed products (Part 3 of 3)

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