WAR CHEST / TOOL 03 / SEQUENCE OF RETURNS
Could a bad start to retirement drain my savings?
Same returns. Same withdrawals. A very different retirement.
Why does the order matter?
If you sell investments to cover spending after a loss, less money is left to benefit from a recovery. Here, one account gets a fixed shuffled order of returns. The other gets all five losing years first. Both use exactly the same 20 annual returns.
Open the fixed two-page sample report (PDF)
Who this applies to
People planning to use invested savings for retirement spending. This is a teaching comparison, not a personalized retirement plan.
Part 1 — Three quick questions
Yes to all three opens the numbers. No or Not sure means there is something to clarify—not that you are ineligible for retirement planning.
Answer the three questions to continue.
What should I take away?
An average return alone cannot tell you how retirement withdrawals will hold up. This example does not estimate your chance of running out or recommend an investment or income product. A different return path or withdrawal amount can change both outcomes.
Ask a qualified financial professional to review spending, dependable income, taxes, fees and a wider range of market paths with you.