INCOME BOOST
$24,832 IN YEAR 1
RISK REDUCTION
11.4% IN YEAR 1
Income Allocation Planning Method
Sources of Income
At Age 85
At Retirement
Withdrawals
$43,350
$43,350
Annuity Payments
0
0
From IRA Savings
$43,350
$43,350
Dividends
$23,450
$11,200
Interest
$11,200
$11,200
Annuity Payments
$18,382
$18,382
From Personal Savings
$40,782
$40,782
Total Pre-Tax Income
$84,132
$84,132
Taxes
$10,954
$10,954
Total After-Tax Income
$73,178
$73,178
% Safe Income
100.0%
48.5%
Allocation of Retirement Portfolios
Income
Allocation
Traditional Asset Allocation
Equities
$425,000
$400,000
IRA
Fixed Income
$425,000
$600,000
Income Annuities (A)
$150,000
$0
Total IRA
$1,000,000
$1,000,000
Equities
$320,000
$400,000
Personal
Fixed Income
$320,000
$600,000
Income Annuities (B)
$360,000
$0
Total Personal Savings
$1,000,000
$1,000,000
Total Retirement Savings
$2,000,000
$2,000,000
Income Annuities (A):0.00/$150,000
Income Annuities (B):$260,000.00/$100,000
Taxable % of personal annuity payments: 40.0%
Comparison - Asset Allocation vs Income Allocation
Sources of Income in Year 1
Income
Allocation
Asset
Allocation
Withdrawals
$43,350
$37,300
IRA
Annuity Payments
0
0
From IRA Savings
$43,350
$37,300
Dividends
$11,200
$10,000
Personal
Interest
$11,200
$12,000
Savings
Annuity Payments
$18,382
0
From Personal Savings
$40,782
$22,000
Total Pre-Tax Income
$84,132
$59,300
Taxes
$10,954
$8,145
Total After-Tax Income
$73,178
$51,155
Income Volatility
51.5%
62.9%
Taxable % of personal annuity payments: 40.0%
IA Percentage: float(7.1)
IA IApercentageNumber:float(0.0707141)
DIA Percentage:float(49.3)
DIA Percentage Number:float(49338.5)
array(114) {
["Income_Allocation_Pre_Rollover_Percentage"]=>
float(0.5)
["Income_Allocation_Pre_Personal_Percentage"]=>
float(0.5)
["Asset_Allocation_Pre_Rollover_Percentage"]=>
float(0.5)
["Asset_Allocation_Pre_Personal_Percentage"]=>
float(0.5)
["availabletoinvest"]=>
int(2000000)
["Income_Allocation_Pre_Rollover_Amount"]=>
float(1000000)
["Income_Allocation_Pre_Personal_Amount"]=>
float(1000000)
["Asset_Allocation_Pre_Rollover_Amount"]=>
float(1000000)
["Asset_Allocation_Pre_Personal_Amount"]=>
float(1000000)
["QLAC_In_RA_Allocation"]=>
float(0.15)
["IA_In_RA_Minus_QLAC_Allocation"]=>
float(0.2)
["RIRA_Equity_Allocation"]=>
float(0.5)
["RIRA_Bonds_Allocation"]=>
float(0.5)
["QLAC_In_RA_Amount"]=>
float(150000)
["IA_In_RA_Minus_QLAC_Amount"]=>
float(0)
["RIRA_Equity_Amount"]=>
float(425000)
["RIRA_Bonds_Amount"]=>
float(425000)
["Asset_Allocation_Pre_Personal_EquitiesGrowth_Percentage"]=>
float(0.4)
["Asset_Allocation_Pre_Personal_EquitiesGrowth"]=>
float(400000)
["Asset_Allocation_Pre_Personal_Bonds"]=>
float(600000)
["Asset_Allocation_Pre_Rollover_EquitiesGrowth"]=>
float(400000)
["Asset_Allocation_Pre_Rollover_Bonds"]=>
float(600000)
["IA_In_Personal_Allocation"]=>
float(0.1)
["DIA_In_Personal_Amount"]=>
float(100000)
["IA_In_Personal_Amount"]=>
float(260000)
["PA_Equity_Allocation"]=>
float(0.5)
["EquitiesHD_In_Personal_Amount"]=>
float(320000)
["Bonds_In_Personal_Amount"]=>
float(320000)
["Income_Allocation_Payout_Rate_Dividends"]=>
float(0.035)
["Income_Allocation_Payout_Rate_Interest"]=>
float(0.035)
["Income_Allocation_Payout_Rate_AnnuityPayments"]=>
float(0.0707)
["Income_Allocation_Payout_Rate_IRAAnnuity"]=>
float(0.0707)
["Asset_Allocation_Payout_Rate_Dividends"]=>
float(0.025)
["Asset_Allocation_Payout_Rate_Interest"]=>
float(0.02)
["Income_Allocation_Pre_Tax_Dividends"]=>
float(11200)
["Income_Allocation_Pre_Tax_Interest"]=>
float(11200)
["Income_Allocation_Pre_Tax_AnnuityPayments"]=>
float(18382)
["Income_Allocation_Pre_Tax_DIA75"]=>
float(13200)
["Income_Allocation_Pre_Tax_DIA80"]=>
float(7850)
["Income_Allocation_Pre_Tax_DIA"]=>
float(7395)
["Income_Allocation_Pre_Tax_From_Personal_Savings"]=>
float(40782)
["Income_Allocation_Withdrawal_Period"]=>
int(25)
["Income_Allocation_Withdrawal_Market_Return"]=>
float(0.06)
["Income_Allocation_Withdrawal_Blended_Return"]=>
float(0.019607843137255)
["Income_Allocation_Withdrawal_PV_Factor"]=>
float(0.051)
["Asset_Allocation_Withdrawal_Period"]=>
int(35)
["Asset_Allocation_Withdrawal_Market_Return"]=>
float(0.06)
["Asset_Allocation_Withdrawal_Blended_Return"]=>
float(0.015686274509804)
["Asset_Allocation_Withdrawal_PV_Factor"]=>
float(0.0373)
["Income_Allocation_Pre_Tax_Withdrawal"]=>
float(43350)
["Income_Allocation_Pre_Tax_IRA_Annuity"]=>
float(0)
["Income_Allocation_Pre_Tax_QLAC"]=>
float(73950)
["Income_Allocation_Pre_Tax_QLAC75"]=>
float(11550)
["Income_Allocation_Pre_Tax_QLAC80"]=>
float(7065)
["Income_Allocation_Pre_Tax_QLAC85"]=>
float(36975)
["Income_Allocation_Pre_Tax_QLAC85_MaxDeferral"]=>
float(73950)
["Income_Allocation_Pre_Tax_From_IRA_Savings"]=>
float(43350)
["Income_Allocation_Pre_Tax_Total"]=>
float(84132)
["Income_Allocation_Taxable_Dividends"]=>
float(0.5)
["Income_Allocation_Taxable_Interest"]=>
int(1)
["Income_Allocation_Taxable_AnnuityPayments"]=>
float(0.4)
["Income_Allocation_Taxable_DIA"]=>
float(0.74664815509187)
["Tax_Rate"]=>
float(0.15)
["Income_Allocation_Taxes_Dividends"]=>
float(840)
["Income_Allocation_Taxes_Interest"]=>
float(1680)
["Income_Allocation_Taxes_AnnuityPayments"]=>
float(1102.92)
["Income_Allocation_Taxes_DIA"]=>
float(828.21946603565)
["Income_Allocation_Taxes_From_Personal_Savings"]=>
float(4451.1394660357)
["Income_Allocation_Post_Tax_Dividends"]=>
float(10360)
["Income_Allocation_Post_Tax_Interest"]=>
float(9520)
["Income_Allocation_Post_Tax_AnnuityPayments"]=>
float(17279.08)
["Income_Allocation_Post_Tax_Personal_Savings"]=>
float(36330.860533964)
["Income_Allocation_Taxable_Withdrawal"]=>
int(1)
["Income_Allocation_Taxable_IRA_Annuity"]=>
int(1)
["Income_Allocation_Taxable_QLAC"]=>
int(1)
["Income_Allocation_Taxes_Withdrawal"]=>
float(6502.5)
["Income_Allocation_Taxes_IRA_Annuity"]=>
float(0)
["Income_Allocation_Taxes_QLAC"]=>
float(0)
["Income_Allocation_Taxes_From_IRA_Savings"]=>
float(6502.5)
["Income_Allocation_Taxes_Total"]=>
float(10953.639466036)
["Income_Allocation_Post_Tax_Withdrawal"]=>
float(36847.5)
["Income_Allocation_Post_Tax_IRA_Annuity"]=>
float(0)
["Income_Allocation_Post_Tax_QLAC"]=>
int(0)
["Income_Allocation_Post_Tax_From_IRA_Savings"]=>
float(36847.5)
["Income_Allocation_Post_Tax_Total"]=>
float(73178.360533964)
["Asset_Allocation_Pre_Tax_Dividends"]=>
float(10000)
["Asset_Allocation_Pre_Tax_Interest"]=>
float(12000)
["Asset_Allocation_Pre_Tax_Annuity_Payments"]=>
int(0)
["Asset_Allocation_Pre_Tax_From_Personal_Savings"]=>
float(22000)
["Asset_Allocation_Taxable_Dividends"]=>
float(0.5)
["Asset_Allocation_Taxable_Interest"]=>
int(1)
["Asset_Allocation_Taxable_AnnuityPayments"]=>
int(0)
["Asset_Allocation_Taxes_Dividends"]=>
float(750)
["Asset_Allocation_Taxes_Interest"]=>
float(1800)
["Asset_Allocation_Taxes_AnnuityPayments"]=>
float(0)
["Asset_Allocation_Taxes_From_Personal_Savings"]=>
float(2550)
["Asset_Allocation_Post_Tax_Dividends"]=>
float(9250)
["Asset_Allocation_Post_Tax_Interest"]=>
float(10200)
["Asset_Allocation_Post_Tax_AnnuityPayments"]=>
int(0)
["Asset_Allocation_Post_Tax_From_Personal_Savings"]=>
float(19450)
["Asset_Allocation_Pre_Tax_Withdrawal"]=>
float(37300)
["Asset_Allocation_Pre_Tax_IRA_Annuity"]=>
int(0)
["Asset_Allocation_Pre_Tax_From_IRA_Savings"]=>
float(37300)
["Asset_Allocation_Pre_Tax_Total"]=>
float(59300)
["Asset_Allocation_Taxable_Withdrawal"]=>
int(1)
["Asset_Allocation_Taxable_IRA_Annuity"]=>
int(0)
["Asset_Allocation_Taxes_Withdrawal"]=>
float(5595)
["Asset_Allocation_Taxes_IRA_Annuity"]=>
float(0)
["Asset_Allocation_Taxes_From_IRA_Savings"]=>
float(5595)
["Asset_Allocation_Taxes_Total"]=>
float(8145)
["Asset_Allocation_Post_Tax_Withdrawal"]=>
float(31705)
["Asset_Allocation_Post_Tax_IRA_Annuity"]=>
int(0)
["Asset_Allocation_Post_Tax_From_IRA_Savings"]=>
float(31705)
["Asset_Allocation_Post_Tax_Total"]=>
float(51155)
}
