Understanding the Misconception

• Average returns are a focal point during the “accumulation” phase of saving and investing
• In retirement, the significance of average returns diminishes due to the impact of when you time your withdrawals

The Reality of Sequence of Returns Risk

• Sequence of returns risk becomes critical when withdrawals start, as early market downturns can devastate a portfolio
• This risk underscores the importance of planning beyond average annual growth expectations 

Mitigating Risks with Annuities

• Annuities serve as a hedge against sequence of returns risk by providing guaranteed lifetime income, unaffected by market fluctuations
• Incorporating annuities into retirement planning ensures financial stability and peace of mind

Strategic Approach to Retirement Income Planning

Retirement planning transcends the pursuit of high average returns; it requires a strategic approach to mitigate risks such as the sequence of returns. Annuities offer a solution, guaranteeing income regardless of market conditions and securing financial freedom in retirement. This strategy allows retirees to focus on enjoying their passions, backed by the assurance of a stable financial future.

What the video below to find out if When the Markets Start to Fall Will You Be Able to Hold On?

Meet Alan: a retiree who thought he had it all figured out. After decades of savvy investing, Alan entered retirement with a hefty $2 million nest egg, expecting to live comfortably on a 10% annual withdrawal rate. The math seemed simple, given his past average returns of 18.6%. But life had a curveball in store.

Just eight years into retirement, Alan’s financial fortress crumbled to dust. The culprit? A concept many overlook until it’s too late: the sequence of returns risk. Early retirement market downturns, combined with regular withdrawals, turned what seemed like a conservative plan into a fast track to financial depletion.

This tale isn’t just a cautionary story; it’s a roadmap to a solution that could have changed Alan’s retirement outcome. Curious about how Alan could have safeguarded his golden years? Our upcoming video dives deep into the missteps and reveals how integrating annuities might have been the lifeline Alan needed.