When losses happen can matter more than whether they happen.
Two hypothetical households retire the same month with the same savings and take the same monthly withdrawal.
Over twenty years they earn the same average return. Household A meets its down years in the first five years, while withdrawals are coming out of a balance that's already shrinking.
Household B meets the same down years late, after early withdrawals came out of a growing balance.
Same money, same average, different order, different result. That's the reason a contractual portion of income is often the first decision: it's income that doesn't have to come out of a market-exposed account in a down year.
The trade-off, named plainly: that portion is less accessible for a period of years, and the contract may cap growth. Any guarantee is backed by the claims-paying ability of the issuing insurance company.
If you retired next year, which account would your first withdrawal come from?
The Income Order Review is 30 minutes on Zoom. I'll show you where the decisions are and what order they're in; the investment side stays coordinated with your investment professional. Click below
https://www.doracalendar.com/retirementgeneral
Educational only; hypothetical and illustrative, not a projection. Past performance does not guarantee future results.
