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A potential solution for Bill and Mary.1

Profile: Bill, age 63; Mary, age 62
Expected retirement age: 65
Retirement savings: $1,250,000
Anticipated annual expenses in retirement: $91,250

Here’s how the Schwab Retirement Income Variable Annuity™ with the GLWB could be used by a couple who is retiring soon. 

The income plan: The couple estimates that they will need $51,250 to cover essential expenses and have budgeted an additional $40,000 for travel, hobbies, entertainment, and other discretionary expenses. They would like to generate income while continuing to invest and maintain access to their assets.

Covering the essentials  
Essential expenses:
$51,250
Combined Social Security income:
($40,000)
Additional income needed for essentials:
$11,250
To cover the remaining $11,250 of essentials, the couple invests in a $250,000 Schwab Retirement Income Variable Annuity with the GLWB.
$250,000 x 4.5% = $11,250 annual income (or more if the Protected Payment Base reaches a higher amount).
Investing for the extras  
Discretionary expenses:
$40,000
Portfolio income and withdrawals:
$40,000
The couple plans to invest the remainder of their portfolio ($1,000,000) in a diversified portfolio of stocks and bonds, withdrawing 4% ($40,000) the first year and increasing the withdrawal each year by the rate of inflation.