Title: See How Ron Secured a $120,000/Year Retirement Income from $3.2M RSUs Tagline: Can Ron, Nearing Retirement with $3.2M in RSUs, Secure a $120,000/Year Perpetual Income Stream? Problem: Ron, a 55-year-old tech executive, is preparing for retirement in 5 years. He has $3.2 million in RSUs that will fully vest in that timeframe. Ron wants to generate a reliable $120,000 annual income stream from these assets indefinitely after retirement, assuming a conservative investment strategy in a portfolio of dividend stocks and bonds. He needs to determine if this is realistically achievable with his current resources. He also needs to understand the impact of taxes on his yield, and consider potential alternative investments if the initial plan falls short. What present value is required today, given his target income and expected rate of return, to support the perpetuity? Solution: Using Golden Door Asset's Perpetuity Calculator, Ron can input his desired annual income ($120,000) and estimated discount rate (reflecting expected portfolio yield) to calculate the present value required to fund the perpetuity. He can then compare this required present value to his projected RSU value at vesting to see if he's on track. Considering his tax bracket, the Tax Equivalent Yield Calculator can provide insights on the pre-tax yield needed to reach his target after-tax income. Finally, the Bond YTM Calculator can help Ron assess the specific yield offered by fixed-income investments he is considering for his portfolio. ROI: By determining the present value needed to sustain his desired perpetual income, Ron can assess whether his $3.2M in RSUs is sufficient. If the Perpetuity Calculator reveals a shortfall (e.g., requiring $3.5M present value), Ron can adjust his retirement timeline, increase savings, or explore higher-yielding (potentially riskier) investment options. Utilizing the Tax Equivalent Yield Calculator, Ron might discover he needs to earn an additional $20,000 pre-tax to net $120,000 after taxes, influencing his investment strategy. The Bond YTM Calculator allows him to potentially increase his income by identifying bonds yielding, say, 0.5% more than initially considered, adding $16,000 to his potential income based on his investment size. Description: Planning for retirement income? See how Ron, a tech executive, uses our Perpetuity Calculator to evaluate his RSU-funded dream. Golden Door Asset helps you make informed decisions. Category: Client Service