Annuity payments
+ portfolio
withdrawals =
4.5% of initial
portfolio, adjusted
for inflation
no annuity
25% annuitized
The probability of
sustaining
withdrawals from
non-annuitized
portion of the
portfolio
for 30
years using varying
stock/bond/cash
allocations
Conservative
20%/50%/30%
Balanced
40%/40%/20%
Growth
60%/30%/10%
70%
81%
82%
87%
91%
90%
Results from "The Retirement Probability Analyzer "by
Moshe Milevsky and the Society of Actuaries, which
computes probabilities associated with various
retirement investment and spending strategies.
Results may vary over time and each time the simulation is run. IMPORTANT: The projections or other information generated by the authors of
the article regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and, are
not guarantees of future results.
This is for illustrative purposes only and not indicative of any investment. An
investment cannot be made directly in an index. Analysis assumes after-inflation
returns of 7% stock/18% standard deviation, 3% bond/10% standard deviation,
0.5% money market funds. Past performance is no guarantee of future results.
A combination of SWP and annuitization
may increase savings longevity