46 • RU BY, WILD ING & SWANSBURG In this reverse return scenario, not only would you not run out of money, but also your account would have nearly $ 1 million left at the end of those twenty one years. Now you see what a difference sequence of returns can make. You can also under stand why the early 2000s changed the way savers thought about their IRAs and 401(k)s. Long-Game Income Tg uhaer aenx tpeeersi eonfc ea s p oe fn st ihoen . 2400010(sk )l se f at nad l IoRt Aosf huasd mt rias ns isnf eg r rt eh de the ris k and responsibility o f a long game retirement to us savers. And, that meant, to play the long game with income, sa vers now ha d t o a ddress t hree risk s: • Longevity risk, or needing income to last a long time in retirement • Sequence-of-returns risk , or needing to grow fu nds steadily when market returns are unsteady • Point-in-time risk , or the ability to retir e when you want, without concern for whether the market is up or dow n Many of us have seen the shortcomings of our 401(k)s ai nncdo mI ReA s .t Wo e bsee e ot huer d irseasdpvoannstiabgi lei st yo, f hnaovt i n go ut hr a telmo npgl ogyaemr ’ es responsibility. This has led many savers to incorporate annuities into their retirement str ategies, which can deliver lifetime income you can’t outlive—regardl ess of what is happening in t he world ar ound y ou.
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