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Income Allocation vs Asset Allocation

MORE INCOME

Age 60 Boost: $14,232.
Thru Age 95 Boost: $2,013,266

Notes: The asset allocation planning method illustrated above allocates savings among stocks, bonds and cash, and withdraws amounts from savings to provide the retiree's income. The Income Allocation Planning method allocates income among interest, dividends, annuity payments and withdrawals from savings early in retirement.
For a description of assumptions and important disclosure, go to Income Allocation Plan Disclosure and Assumptions.

Gender

Savings

Current Age

% Rollover

Stock Market Outlook

Return to Step 1

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Fill in the information below to create your own Income Allocation Plan and to order your Income Allocation Plan report. By registering, you will also gain automatic access to all Go2Income resources.

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Retirement Savings Included in Income Power Calculation

Use this worksheet to calculate your estimated retirement savings included as a source for your Income Power. For planning purposes Go2Income suggests using higher percentages of your tax-deferred savings and lower percentages of your after-tax savings and equity in your primary residence.

Source of Savings	Estimated Value ⁽¹⁾	Percentage Included ⁽²⁾	Amount Included
IRA/Qualified
Deferred Annuities
Personal (After Tax)
Primary Residence ⁽³⁾
Roth IRA
Totals

(1) Fill in estimated value of your retirement savings
(2) Modify percentage (%) to be included if necessary
(3) Fill in value of residence (max $650,000) less existing mortgage

INCOME BOOST
$13,427 IN YEAR 1

RISK REDUCTION
14.5% IN YEAR 1

Income Allocation Planning Method

Sources of Income

At Age 85

At Retirement

Withdrawals

$37,584

Annuity Payments

$10,701

From IRA Savings

$48,285

Dividends

$27,531

$14,850

Interest

$11,880

Annuity Payments

$5,412

From Personal Savings

$32,142

Total Pre-Tax Income

$80,427

Taxes

$11,635

Total After-Tax Income

$68,792

% Safe Income

100.0%

53.3%

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

Total IRA

$1,000,000

Equities

$396,000

$400,000

Personal

Fixed Income

$396,000

$600,000

Income Annuities (B)

$208,000

Total Personal Savings

$1,000,000

Total Retirement Savings

$2,000,000

Income Annuities (A):$174,000.00/$130,000
Income Annuities (B):$88,000.00/$120,000
Taxable % of personal annuity payments: 40.0%

Comparison - Asset Allocation vs Income Allocation

Sources of Income in Year 1

Income
Allocation

Asset
Allocation

Withdrawals

$37,584

$41,000

IRA

Annuity Payments

$10,701

From IRA Savings

$48,285

$41,000

Dividends

$14,850

$8,000

Personal

Interest

$11,880

$18,000

Savings

Annuity Payments

$5,412

From Personal Savings

$32,142

$26,000

Total Pre-Tax Income

$80,427

$67,000

Taxes

$11,635

$9,450

Total After-Tax Income

$68,792

$57,550

Income Volatility

46.7%

61.2%

Taxable % of personal annuity payments: 40.0%

IA Percentage: float(6.2)

IA IApercentageNumber:float(0.0615229)

DIA Percentage:float(55.9)

DIA Percentage Number:float(55866.8)
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}

Select Survival Age

Withdrawals

DIA Payments

Advantage DIA

"Payments" above include (1) periodic amounts paid to annuitant(s) through the selected survival age, and (2) any residual amount paid to the beneficiary at the survival age. A negative "Advantage DIA" will likely occur if you select a young survival age.

Income Allocation vs Asset Allocation

MORE INCOME

Register to Customize Your Plan

Retirement Savings Included in Income Power Calculation

IRA/Qualified

Personal Savings

Deferred Annuities

Primary Residence

Income Power Details