Proposed Retirement Plan Demo.

This version of the retirement plan does not have all of the yellow information text boxes, so it looks a lot more like what you'd be seeing when you have it.

With their current plan, John and Mary Sample would have run out of money in their 80s if they would have continued doing what they planned.

But with RWR, and the asset allocation software on this site, they were able to survive just fine past 100 with more income, security, and peace of mind.

Changes from the current retirement plan version are:

· John was able to get 10% more income when he retired. His income goal went from $50,000 to $55,000 per year.

· Mary was able to get 12% more income when she retired. Her income goal went from $25,000 to $28,000 per year.

· A half percent higher inflation rate was used to match higher expected inflation. If it doesn't materialize, then they'll just have a little more money to spend. If it does happen then, they'll have been prepared. If inflation turns out to be even higher, then they'll be that much better off than if they weren't able to plan for it.

· They were able to keep all of their planned expenditures going.

· They were also able to keep their current home. They thought that they would have to downsize after the kids graduated college, but it turns out that if they stuck with the plan, they'd be just fine. They can pass the home to their children, the whole family will have a nice place to meet on holidays, and they can pass away in peace where they grew up. This difference in income goals is in the income manual override column.

· By analyzing their bond portfolio, it turns out that replacing all that with a good bond mutual fund, they were able to increase their return by 20% (from 5% to 6%), and do something better with the few hours per week spent managing it. They also realized that just planning to spend the interest was not practical. So they'll be on a mutual fund systematic withdrawal program instead. See the Oldest Asset #2 sheet.

· They sold off their portfolio of stocks and replaced them with a portfolio of well-allocated mutual funds. That raised their estimated rate of return from 8% to 10%. Using the Flexible payout method also helped over what they planned to do. See the Oldest Asset #3 sheet.

· With our help, they were able to reallocate their current employer 401(k) plan using the investment options they're stuck with while employed. When they retire, they can roll them over into rollover IRAs, where they aren't limited to a small list of investment choices, and then can use asset allocation with mutual funds.

This raised their estimate rate of return from 7% to 8%. See the Oldest Asset #4 sheet. Using the Flexible payout method also helped over what they planned to do.

· They got with the well-diversified asset allocation program with their IRA's and were able to cut their risk by half, and increase their estimated rate of return 10% (from 10% to 11%). Using the Flexible payout method also helped over what they planned to do. See the Youngest Assets #1 - 5 sheets.

· They were able to get out a 5% annuity and buy mutual funds.

· They bought Long-Term Care insurance that turned spending thousands per month in nursing home costs and medical bills into paying premiums of one-tenth that amount.

That's it. All it took was restructuring asset payouts, contributing a little more to their retirement plans, buying LTC insurance, getting rid of trying to market time and pick individual stocks and bonds by replacing all that with asset allocation using mutual funds, and they're all set.

They could also actually retire a year or so earlier if they were will to cut their spending a little too.

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