Sequence of Returns Matters
Sequence of Returns Matters.
Investment returns are variable and unpredictable. The order of returns has an impact on how long a portfolio will last if the portfolio is in the distribution stage and if a fixed amount is being withdrawn from the portfolio. Negative returns in the first few years of retirement can significantly add to the possibility of portfolio ruin.
Article further explores.
The situation:
If the client had retired and the sequence of returns correlated with Scenario A, after a 10 year timeframe he would have had an ending balance of $506,951.
But what if we compare that with Scenario B where the sequence of returns was reversed. He would have an ending balance of $406,597. that is a difference of -$100,054!
Cash Value Life Insurance can eliminate downside risk from market volatility. The Tax-Free IUL can play an important roll in supplementing retirement income. You can download a free ebook at https://www.bruceecoxcpa.com/tax-free-iul-ebook.html
Bruce E Cox CPA
Profit from my 35+ years experience working with high net worth individuals, families, entrepreneurs and businesses, helping them create wealth, keep their wealth and pass it on to the next generation. You can benefit too. I have made and lost millions in the stock market and you can benefit from this too. Ever since I have been searching for Safe Income Strategies and Solutions. We use three Safe Income Strategies that are focused on keeping your money safe, paying more than Bank CDs, Money Markets and Treasuries without the gut wrenching downside and yo-yo volatility of Stocks, Bonds and Mutual Funds. These Strategies Work. During the Financial Market meltdown of 2008 and 2009 none of our clients using these Strategies lost money due to market volatility.