• Question
  • In 5 years I expect to have about $2mm in investable assets. What is the safest allocation you would

    Asked by a 63 year old man from Rockwall, TX on 8/26/2012

    In 5 years I expect to have about $2mm in investable assets. What is the safest allocation you would recommend to generate a $60K per year income stream (today's dollars) for 30 years?

  • Categories: Retirement Planning, Guaranteeing Income, Annuities


  • Editorial 


    San Francisco, CA

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  • Congratulations on accumulating significant assets for retirement!

    And good for you for knowing to look for "safe allocation." It is our opinion that you should first figure out exactly how much income you will absolutely require in retirement. And you should use your assets to GUARANTEE that amount of income.

    If Social Security and other lifetime income sources like pensions do not cover your basic retirement expenses, then many financial planners highly recommend a lifetime annuity with inflation protection to make sure that you can maintain your quality of life. You can estimate the cost of monthly income here:
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    With your basic expenses covered, you may be able to take a little more risk and get potentially better returns with any remaining assets. To maximize returns on your assets, you will want to invest prudently. There are a few new online investment resources that may help with your investment decisions. Companies like MarketRiders are utilizing investment strategies developed by Nobel laureates in finance to provide automated investment advice at a relatively low cost. These companies try to maximize investment returns and minimize risk. You can match yourself to one of these asset allocation resources here:
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    Thank you for using the NewRetirement Calculator. https://www.newretirement.com/retirement-calculator/default.aspx We hope that you found some useful information and resources for maximizing your retirement income!

  • Login to rate this answer:   Answered on 8/28/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.