INCOME BOOST
$23,818 IN YEAR 1
RISK REDUCTION
10.7% 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
$17,368
$17,368
From Personal Savings
$39,768
$39,768
Total Pre-Tax Income
$83,118
$83,118
Taxes
$10,744
$10,744
Total After-Tax Income
$72,374
$72,374
% Safe Income
100.0%
47.8%
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
$17,368
0
From Personal Savings
$39,768
$22,000
Total Pre-Tax Income
$83,118
$59,300
Taxes
$10,744
$8,145
Total After-Tax Income
$72,374
$51,155
Income Volatility
52.2%
62.9%
Taxable % of personal annuity payments: 40.0%
IA Percentage: float(6.7)
IA IApercentageNumber:float(0.0668485)
DIA Percentage:float(42.7)
DIA Percentage Number:float(42686.95)
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