Discover the tips and strategies that will help you achieve your retirement goals.

I'm your host, James Canole, and this is the podcast dedicated to helping you retire well.

It all starts right here on Ready for Retirement. for retirement.

Hi, everyone and welcome back to another episode of Ready for Retirement.

I'm your host, James Cannell.

And we're going to explore kind of a case study today from a listener question. And it's about how to determine what pension or annuity options to

select going into retirement. So we will go through this. And to start, let me read the question.

The question is this. It says, I recently turned 64 years old and I plan to retire when I'm 67 and

three years from today. My wife and I will both retire and claim social security benefits,

my benefit plus her spousal benefit at that time. At the time of retirement, we anticipate a

social security benefit of $53,000 in today's dollars with an annual expense budget of $80,000.

I anticipate a portfolio balance in my 403B of between $1.15 and $1.25 million at that time

and $245,000 of this portfolio is in the TIA traditional annuity.

The remaining 900,000 to a million is invested in the portfolio of stocks, bonds, and cash.

I can withdraw funds from a TIAA traditional annuity in three ways. Number one,

annuitized over my full life, my wife's whole life. Number two, annually withdraw earnings of $10,000,

but allowing for no future growth or principal in the annuity. Or number three, withdraw the

entire principal and earnings and 10 equal payments over nine years. In order to maximize the buying

power of this annuity and minimize sequence of return risk in the balance of my portfolio,

I am thinking that the third option of withdrawing the full annuity principle in nine years

in allowing my retirement portfolio investment to grow over this nine year period.

Until I need to start RMDs at age 72, five years after I retire,

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