A married couple, both aged 82, have a portfolio of $10M, some in brokerage and some in tax deferred accounts (IRA). They have $70K a year in Social Security.
In addition to the Social Security, they want an additional $150K/year in pre-tax income for a total of $220K/year in pretax income.
What is the standard advice for how to get this additional income in a way that is “guaranteed”?
Their SS is $70 K. Their IRAs must be throwing off some RMDs at this point, but we don’t know how much that is. Let’s just say it is $50K. That’s 120K. That is also more than half of their highest figure ($220K) and is already 80% of their lowest figure. They might have some bond funds or income funds already that could easily make up that difference, but if they don’t, it is easy to choose one or two such funds, and have the income deposited each month in their checking account. In this way, their large nest egg might barely be touched.
They could annuities, either a SPIA or QLAC, or a TIPs ladder or a combination.
Thank you
I have to say some of the responses seem a bit unwelcoming. If I may humbly suggest, rather than criticize a poster’s question, one can just be quiet.
Thanks, Michael1. We need to be better.