INCOME BOOST
$12,847 IN YEAR 1
RISK REDUCTION
13.8% IN YEAR 1
Income Allocation Planning Method
Sources of Income
At Age 85
At Retirement
Withdrawals
$37,368
$37,368
Annuity Payments
$12,300
$12,300
From IRA Savings
$49,668
$49,668
Dividends
$29,185
$13,939
Interest
$11,948
$11,948
Annuity Payments
$6,292
$6,292
From Personal Savings
$32,179
$32,179
Total Pre-Tax Income
$81,847
$81,847
Taxes
$12,440
$12,440
Total After-Tax Income
$69,407
$69,407
% Safe Income
100.0%
54.3%
Allocation of Retirement Portfolios
Income
Allocation
Traditional Asset Allocation
Equities
$346,000
$400,000
IRA
Fixed Income
$346,000
$600,000
Income Annuities (A)
$308,000
$0
Total IRA
$1,000,000
$1,000,000
Equities
$398,250
$400,000
Personal
Fixed Income
$398,250
$600,000
Income Annuities (B)
$203,500
$0
Total Personal Savings
$1,000,000
$1,000,000
Total Retirement Savings
$2,000,000
$2,000,000
Income Annuities (A):$173,000.00/$135,000
Income Annuities (B):$88,500.00/$115,000
Taxable % of personal annuity payments: 40.0%
Comparison - Asset Allocation vs Income Allocation
Sources of Income in Year 1
Income
Allocation
Asset
Allocation
Withdrawals
$37,368
$41,000
IRA
Annuity Payments
$12,300
0
From IRA Savings
$49,668
$41,000
Dividends
$13,939
$10,000
Personal
Interest
$11,948
$18,000
Savings
Annuity Payments
$6,292
0
From Personal Savings
$32,179
$28,000
Total Pre-Tax Income
$81,847
$69,000
Taxes
$12,440
$9,600
Total After-Tax Income
$69,407
$59,400
Income Volatility
45.7%
59.4%
Taxable % of personal annuity payments: 40.0%
IA Percentage: float(7.1)
IA IApercentageNumber:float(0.0711098)
DIA Percentage:float(81.1)
DIA Percentage Number:float(81069.13)
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