Title: Annuity Calculator - Case Study 5: From Main Street to Monthly Checks: $5M Sale to Secure $20,000/Month Income for Life Tagline: Turning a business sale into a reliable retirement income stream. Problem: Problem Statement: Eleanor, 62, is selling her highly successful local bakery for $5 million. While thrilled with the sale price, she's overwhelmed by the prospect of managing such a large sum and ensuring it provides a stable, predictable income stream to cover her living expenses of approximately $20,000 per month after taxes. She's worried about market volatility eroding her principal and outliving her savings, but also doesn't want to sacrifice all potential investment growth. She also has some stock holdings inherited from her parents. How can she convert her business sale into a secure, inflation-protected retirement income, factoring in potential tax implications of her existing stock portfolio? Solution: Solution Statement: By using the Golden Door Asset Annuity Calculator, Eleanor can model various annuity purchase scenarios, comparing immediate vs. deferred annuities, fixed vs. variable rates, and different payout options. She can input her desired monthly income ($20,000), estimated expenses, and risk tolerance to determine the optimal allocation of her $5 million sale proceeds towards an annuity. Specifically, she can see how much of her inheritance she should donate versus reinvest. By exploring different annuity types and terms, Eleanor can create a plan that guarantees a steady income stream, protects her principal, and potentially provides upside through variable annuity options. Furthermore, by using the Tax Equivalent Yield calculator, she can compare the after-tax return of the annuity against her current stock portfolio, and assess if she should donate her highly appreciated shares to avoid large capital gains taxes. ROI: $2,400,000 guaranteed lifetime income over 10 years, based on a $2 million annuity investment securing $20,000/month in income. Potentially an additional $200,000 saved in capital gains taxes by donating, rather than selling, highly appreciated shares. This is due to the lower tax burden on retirement income generated by the annuity as compared to selling the same amount of stocks. Description: Unlocking financial freedom through smart annuity planning. Use our annuity calculator to explore options and create a customized income strategy. Category: Lead Gen Calculators: Annuity Calculator, Tax Equivalent Yield Calculator, Bond YTM Calculator