INCOME BOOST
$12,720 IN YEAR 1
RISK REDUCTION
14.0% IN YEAR 1
Income Allocation Planning Method
Sources of Income
At Age 85
At Retirement
Withdrawals
$37,584
$37,584
Annuity Payments
$10,231
$10,231
From IRA Savings
$47,815
$47,815
Dividends
$27,531
$14,850
Interest
$11,880
$11,880
Annuity Payments
$5,174
$5,174
From Personal Savings
$31,904
$31,904
Total Pre-Tax Income
$79,720
$79,720
Taxes
$10,870
$10,870
Total After-Tax Income
$68,849
$68,849
% Safe Income
100.0%
52.9%
Allocation of Retirement Portfolios
Income
Allocation
Traditional Asset Allocation
Equities
$348,000
$400,000
IRA
Fixed Income
$348,000
$600,000
Income Annuities (A)
$304,000
$0
Total IRA
$1,000,000
$1,000,000
Equities
$396,000
$400,000
Personal
Fixed Income
$396,000
$600,000
Income Annuities (B)
$208,000
$0
Total Personal Savings
$1,000,000
$1,000,000
Total Retirement Savings
$2,000,000
$2,000,000
Income Annuities (A):$174,000.00/$130,000
Income Annuities (B):$88,000.00/$120,000
Taxable % of personal annuity payments: 30.0%
Comparison - Asset Allocation vs Income Allocation
Sources of Income in Year 1
Income
Allocation
Asset
Allocation
Withdrawals
$37,584
$41,000
IRA
Annuity Payments
$10,231
0
From IRA Savings
$47,815
$41,000
Dividends
$14,850
$8,000
Personal
Interest
$11,880
$18,000
Savings
Annuity Payments
$5,174
0
From Personal Savings
$31,904
$26,000
Total Pre-Tax Income
$79,720
$67,000
Taxes
$10,870
$9,450
Total After-Tax Income
$68,849
$57,550
Income Volatility
47.1%
61.2%
Taxable % of personal annuity payments: 30.0%
IA Percentage: float(5.9)
IA IApercentageNumber:float(0.0588191)
DIA Percentage:float(33.6)
DIA Percentage Number:float(33577.57)
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