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Don’t Make Me Say I Told You So 189

Client 1: Negative Returns Later On

End of Year Rate of Return Withdrawl Account Value
at End of Year
$1,000,000
1 24% $50,000 $1,178,000
2 20% $50,000 $1,353,600
3 16% $50,000 $1,512,176
4 12% $50,000 $1,637,637
5 8% $50,000 $1,714,648
6 4% $50,000 $1,731,234
7 0% $50,000 $1,681,234
8 -8% $50,000 $1,500,735
9 -10% $50,000 $1,305,662
10 -20% $50,000 $1,004,529
Average Annual Rate of Return 3.7%

Client 2: Negative Returns Early On

End of Year Rate of Return Withdrawl Account Value
at End of Year
$1,000,000
1 -20% $50,000 $760,000
2 -10% $50,000 $639,000
3 -8% $50,000 $541,880
4 0% $50,000 $491,880
5 4% $50,000 $459,555
6 8% $50,000 $442,320
7 12% $50,000 $439,398
8 16% $50,000 $451,702
9 20% $50,000 $482,042
10 24% $50,000 $535,732
Average Annual Rate of Return 3.7%

Chapter 5: Things That Can Wreck Your Retirement