You can get $3719 Joint Life in the open market, so your annuity is very poor, and IRA rollover makes sense. That adds to your tax-deferred portion and later leads to higher RMDs which is not the worst problem to have. Roth Rollovers can be used to reduce the RMD liability if later higher tax brackets can be reduced/eliminated.GuyNearRetirement wrote: ↑Sun Sep 22, 2019 5:53 pmThere is an option for an annuity. For J&C 100%, it would pay $3,310. For J&C 50%, it would pay $3,516. For a single life, it would be $3,750. I've got two kids (daughter is 20, son is 18). I had planned on doing the annuity, but I was told that the annuity was surprisingly low compared with the lump sum.Joint Life & Period Certain Options
Income Starts Immediately Est. Monthly Income $3,719
Joint Life & Period Certain Options
Income Starts in 10 Years Est. Monthly Income $5,792
Incidentally, I have separate accounts not listed above that cover their expected college costs and a buffer for those unexpected early adulthood expenses.
I'm new to i-orp, but roughly, "Your projected, maximum, annual Disposable Income is $136,000 in today's, after tax dollars." Looks like there's some inflation adjustment, but plans to exhaust funds by age 92.
Correct any errors, and adjust up for spouse SS at 70 (didn't see how do that with simulation; also don't know why it chose 92 as Retiree Planning Horizon).
I would have guessed it made sense to spend down the taxable accounts first and do Roth conversions the first years of retirement, but i-orp seems to point out that some taxable at lower brackets should be taken out as well, which makes sense now.
If you annuitize now, you can spend almost 5%, but have to consider inflation. If you use up taxable and annuitize at 65, it goes up to almost 7.5%. And/or you can annuitize even later for longevity planning needs.
Alternatively, the 4% SWR stands a good chance of being sustainable and leaving behind a nice inheritance if that's important.
So, OP, various ways of looking at the income side put you in a very good position. On top of all that, I think you've overestimated (at least for now, not knowing inflation later) the basic non-discretionary spending.