The article examines how a 66-year-old could turn a $1.02 million 401(k) rollover into a $6,050 monthly paycheck, or $72,600 a year, without buying an annuity. Reaching that income would require a portfolio yield of about 7.1%, and the article notes that risk-free yields such as the 10-year Treasury would fall short without taking on equity or credit risk. It groups yields into conservative (3% to 4%), moderate (5% to 7%) and aggressive (8% to 14%) tiers, noting that higher yields typically come with slower growth or greater risk of principal erosion. A direct trustee-to-trustee rollover avoids the 20% withholding that applies if funds are paid to the retiree. The article suggests a lower starting yield with growing dividends may provide more income by age 75 as prices rise.
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