Risk 2: Will your savings provide enough income? It’s important to minimize the chance that you’ll spend your savings too quickly. The amount of income your savings will provide depends on the size of your nest egg, your asset allocation, market returns, and your withdrawal rate. Historically, to have a 95% chance that their retirement portfolio would last throughout a 30-year retirement, people with the following portfolios could have made the following annual withdrawals. 3
Tip #1. Reimagine your asset allocation. Replacing some— or all—of a bond allocation with a fixed index annuity can help you overcome the challenge of outliving your savings by • reducing overall portfolio risk,
RANGES OF SUSTAINABLE WITHDRAWAL RATES:
• optimizing
performance in rising and falling interest rate environments, and
40% STOCK PORTFOLIO
100% CASH PORTFOLIO
100% STOCK PORTFOLIO
60% BONDS PORTFOLIO
• helping you avoid significant losses immediately before and early in retirement.
1.85%
1.69%
1.28%
The withdrawal rate depends on market volatility as well as whether market fluctuations occurred early or late in retirement. 3
3 WealthVest. Sustainable Withdrawal Rates for New Retirees in 2022.
WealthLock SM Accumulator
4
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