It may sound like common sense, or even cliché, but many who were born in the 1930’s or 1940’s grew up listening to parents discuss the “stock market” as a source of destruction and loss. As a result, those retirees may seek to “fix” their income in a world where the cost of lifestyle sustaining goods increases year after year. The problem is exacerbated in traditional systematic withdrawal programs when retiring at a market top like 1999 and 2007.
The tables below illustrate a systematic withdrawal program started in 1999, which is a market top, where the client begins with a $500,000 investment and increases withdrawals annually to keep up with the changes in cost of living. This client faces a high risk of exhausting their account balance while they still may have many more years ahead of them.
Because of a time-tested investment process that minimizes the risk of unrecoverable losses, even from a market top, the Ocean Park Balanced Risk Model may provide a retiree a very different outcome and experience.
