SeniorSite.com For The Young At Heart And Healthstyle Smart  
Seniors,adult,mature,senior,boomers,mature,chat,chat room,seniors
Home Free Chat Find A Friend HealthStyle Health Finance Retirement Sex Singles Long Term Care About Us
SeniorSite.com - For The Young At Heart And HealthStyle Smart
SeniorSite.com - For The Young At Heart And HealthStyle Smart
SeniorSite.com - Seniors,adult,mature,senior,boomers,mature,chat,chat room,seniors
SeniorSite.com - Seniors Retirement Living Well In Retirement retirement planning estate planning
SeniorSite.com - Seniors Retirement Living Well In Retirement retirement planning estate planning
Retirement Planning:

A bad market in early retirement can be devastating

A bad market in early retirement can be devastating

Managing money during retirement is very different than managing money before retirement. During the accumulation phase, an emphasis is placed on attaining the highest returns. But when the time comes to begin withdrawing money, avoiding losses is significantly more important than achieving high returns -- especially during the early years of retirement.

Even if you can predict the rate of inflation and average return of your investments over the long term, encountering a bear market within the first five years of retirement can significantly increase the risk of running out of money. The accompanying chart depicts how two similar retirement portfolios performed in two different market environments over a 10-year period.

The individual in Portfolio A retires with $500,000 and earns an annual return of 9.5 percent over the next 10 years. During this period he withdraws 7 percent ($35,000) of his principal in year one, then increases his withdrawals by 3.5 percent each year thereafter for inflation. After withdrawing nearly $400,000 of income during the 10-year period, he has $697,818 in retirement savings -- more than the total with which he started.

Portfolio B shows what would have happened if our retiree withdrew the same amount of inflation-adjusted income and earned the same 9.5 percent over the same 10-year period -- but in a vastly different environment. Unfortunately for him, instead of seeing his savings gain 10 percent in year one, they lost 22.1 percent. That, combined with his $35,000 withdrawal, left him with a balance of $362,235.

Similarly, in year two, in addition to withdrawing $35,900 of inflation-adjusted income, the market proceeds to lose an additional 11.9 percent. Thus, our retiree's savings are further reduced to $287,368. And after losing 9.1 percent of his savings in year three, our retiree now has a total of just $227,466.

In other words after just three years, our fictitious retiree would have less than half of his original $500,000 savings left -- even though he only withdrew about $110,000 of income. And even though his retirement portfolio proceeded to earn an average annual return of 22 percent over the next seven years, he would still have just $266,598, compared to $697,818 in portfolio A.

You could spend as much time in retirement as you have spent saving for it. That is why planning for your retirement savings to generate income is critical. Developing a solid plan and appropriate investments for years of income are well worth your efforts.

Struggling with debt

Chat and meet new friends at Senior Site Chat

Senior,Seniors,Senior Citizen,Seniors,Seniors HealthStyle - Mature Healthy Living Lifestyle - SeniorSite.com, boomer,Retirement,Health Care,Long Term Care,Extended Care,Retirement,Nursing Homes,Entertainment site for seniors - 55 years old and over that are still young at heart!

Let us help you get out of debt

Senior,Seniors,Senior Citizen,Seniors,chat,chat room,Over 50 Chat,Over 60 Chat,chat rooms,senior chat,Chit Chat,Chatters Senior,Chat,Singles,Friends,Health Care,Mature,Seniors Health,Seniors Chat,Senior Sex Issues, boomer,Retirement,Health Care,Long Term Care,Extended Care,Retirement,Nursing Homes,Entertainment site for seniors - 55 years old and over that are still young at heart!

Senior,Seniors,Senior Citizen,Seniors,chat,chat room,Over 50 Chat,Over 60 Chat,chat rooms,senior chat,Chit Chat,Chatters Senior,Chat,Singles,Friends,Health Care,Mature,Seniors Health,Seniors Chat,Senior Sex Issues, boomer,Retirement,Health Care,Long Term Care,Extended Care,Retirement,Nursing Homes,Entertainment site for seniors - 55 years old and over that are still young at heart!
SeniorSite.com - For The Young At Heart And HealthStyle Smart

SeniorSite.com - For The Young At Heart And HealthStyle Smart
To submit Editorial Content, Book Reviews, News and Press Releases send to
SeniorSite.com - For The Young At Heart And HealthStyle Smart

 

Seniors,adult,mature,senior,boomers,mature,chat,chat room,seniors
SeniorSite.com - For The Young At Heart And HealthStyle Smart

 Copyright © 1998 -  2017  SeniorSite.com™, Inc.   All rights reserved.  Copyright Info | Advertisement Info | Contact Info | Terms Of Use | Privacy Policy | Sitemap  | Sitemap Links

   SeniorSite™, SeniorSite.com™, For The Young At Heart™ and HealthStyle™ are trademarks and service marks of SeniorSite.com™, Inc.

 

 

 

 

 

 

 seniors links Jewelry Discount Coupons Personalized Jewelry Discounts Dr Jodee Meddy Dubois PA Jodee Meddy Dubois PA Meddy Dubois PA Dubois PA Dubois Diva Jo Diva jodiva Jodee Meddy Dr Jodee Meddy Jodee Graifman Meddy Jodee Graifman