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Impact of Poor Investment |
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Contact our specialists on annuities
Toll Free Help: 866-613-3636
Toll Free Help: 866-613-3636
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Contact our specialists on annuities Toll Free Help: 866-613-3636 |
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To a surprising degree, the year in which you start spending your retirement assets can have a big impact on how long your money lasts. Consider 2 hypothetical 65-year-old retirees, Richard and Barbara. Both had $300,000 portfolios split 50-50 between stocks and bonds in tax-deferred accounts. Both withdrew about $18,000 a year, or 6% of their portfolio, with annual adjustments for inflation. But, as the table below shows, Richard ran out of money. Barbara didn't. Barbara retired in 1982, just before one of the longest bull markets in history. Her portfolio grew faster than the rate of her withdrawals. Sixteen years later at age 81, Barbara's portfolio was worth almost $800,000. Richard retired in 1972, just prior to the bear market of 1973-1974, when stock indexes fell 40%. Richard's savings were gone in sixteen years. Richard could have avoided it & Barbara may have still done better! more info
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