Assumes $1 million invested in a blended portfolio of 35% stocks and 65% bonds; returns are based on historical S&P 500 and Bloomberg Aggregate Bond Index from 2005-2024. Retiree makes annual $80,000 withdrawals.
Years with portfolio declines
Years in Retirement
$1,000,000 $800,000 $600,000 $400,000 $200,000 $0
0
5
10
15
20
$0
Without a buffer asset
Account Balance
Selling during a bear market can lock in your losses and imperil your retirement
When you’re still working, you have time to ride out market volatility. But when you’re selling investments for income in retirement, it’s a different story.