How a 59-year-old Widower Added Nearly $20,000 Extra Each Year in Retirement

May 28

Background

A 59-year-old widower was preparing for retirement with a plan to withdraw $59,000 annually. After taxes, that would leave him with about $4,000 each month to live on. His assets included a mix of investments and a Roth IRA, but he was worried about whether his money would last, especially without taking big risks in the market.

The Problem

His original plan focused on steady withdrawals, but it didn’t maximize the potential of his investments. He was set to rely heavily on principal spending, which could drain his savings faster than he liked. Plus, taxes were taking a bigger bite than expected.

The Game Plan

Here’s how we helped him improve his retirement outlook:

Reorganized Asset Withdrawals: We restructured how he pulled money from his accounts. Early on, he withdrew more from his Roth IRA, which helped lower his taxable income in the first few years of retirement.
Used a Smart, Tax-Advantaged Strategy: By incorporating a tax-advantaged solution, we found a way to boost his retirement income without adding financial stress.
Bucket Strategy: We divided his assets into different “buckets” based on tax treatment and investment type. This helped balance growth, stability and tax efficiency.

What Changed

More Money Each Month: His income jumped from $4,000 to $5,500 a month by year five. That’s an extra $1,500 every month, giving him more breathing room for everyday expenses and even some fun splurges.
Bigger Annual Income: His yearly income increased from $59,000 to $70,000, a 13% boost that adds up to an additional $10,000 to $15,000 every year.
Leaving a Legacy: Even with the higher income, Rick preserved a $1 million benefit to leave as an inheritance for his family.

Less Stress About Taxes

By tapping into his Roth IRA early and using tax-smart withdrawals, he reduced his tax burden.

He paid less in taxes each year while still increasing his income.

He avoided the need to rely on risky market returns to fund his lifestyle.

Stable, Predictable Income

He doesn’t have to worry about market crashes affecting his income.

His plan generates steady, reliable income, giving him peace of mind and financial security.

The Bottom Line

Thanks to a few strategic moves, he now enjoys:

An Extra $1,500 in His Pocket Every Month: That’s $18,000 more each year to cover bills, travel or just enjoy life.
$10,000 to $15,000 More Income Annually: Without having to dip heavily into his savings.
$1 Million Preserved for His Family: A legacy he can feel proud of, knowing his loved ones will be taken care of.

There’s no risk in scheduling a 15-minute call to see if we can do the same for you.