Client Case Study
Retirement Income Strategy · Age 55

A personalized 6-step plan to turn your $300,000 annuity into a lifetime of tax-efficient retirement income — starting at age 65.

Age 55
Client Age
Age 55 → 65
Accumulation Period
$404,000
Personal Contributions
The Plan at a Glance
1
American Equity AssetShield 9 — Start with $300,000 annuity
2
North American Builder Plus 4 IUL — $600,000 coverage
3
72(t) Distribution — $21,000/yr from annuity (Yr 2–10), penalty-free
4
Fund the IUL — $23k personal contribution Yr 1, then 72(t) + $9k Yr 2–10
5
Accumulation Phase — Grow from Age 55 → 65
6
Retirement Income — Draw $31,980/yr tax-free from IUL starting at 65
1
Starting Point · Annuity

American Equity AssetShield 9

$300,000
Starting Value
A.M. Best RatingA (Excellent)
Current S&P 500 Cap (as of 04/2026)9.25%
72(t) Distributions (Yr 2–10)$21,000 / yr
Remaining Annuity Value at 85$1,403,980
2
Life Insurance · IUL

North American Builder Plus 4 IUL

A.M. Best RatingA+ (Superior)
Current S&P 500 Cap (as of 04/2026)10.50%
Living BenefitsYES ✓
Coverage (Death Benefit)$600,000
1st Year Premium$23,000
Annual Premium (Year 2–10)$30,000 / yr
3
Accessing the Annuity Early

72(t) Distribution

$21,000
per year · Years 2–10 · penalty-free

IRS Rule 72(t) allows penalty-free early withdrawals through Substantially Equal Periodic Payments (SEPPs). This unlocks the annuity before age 59½ without triggering the 10% early withdrawal penalty. The $21,000/yr flows directly into the IUL premium starting Year 2.

4
Funding the IUL Premium

How the IUL Gets Funded

Year 1

Personal Contribution$23,000
1st Year Premium$23,000

Years 2–10

From 72(t) Withdrawals$21,000 / yr
Personal Contribution$9,000 / yr
Annual Premium (Yr 2–10)$30,000 / yr
5
The Growth Phase

Accumulation: Age 55 → 65

Age 55
→
10 Years
→
Age 65

Both accounts grow with index-linked crediting and downside protection — you participate in market gains without direct market risk.

IUL Coverage (Death Benefit)$600,000
IUL Tax-Free Income Starts at 65$31,980 / yr
Annuity Remaining at 85$1,403,980
Strategy Summary
Total Lifetime Value at 85
$2,243,122
Annuity + IUL combined
Personal Contributions
$404,000
total all-in
IUL Income / yr
$31,980
tax-free · starting at 65
IUL Coverage
$600,000
death benefit
Annuity Value at 85
$1.4M
remaining balance
Where the $2,243,122 Comes From
Annuity at 85
$1,403,980
IUL Tax-Free Income (From 65–85)
$671,580
Remaining Death Benefit
$167,562
Total Lifetime Value $2,243,122

Presented by NxtGen Equity · Santa Ana, CA

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