How the Sequence of Return Can Affect Retirement Income

Introduction to Random Market Returns

When planning for retirement income, the ultimate goal is to protect your savings while building your nest egg. You need to consider how the sequence of return could impact your value over time, especially the years you'll be living off the nest egg you've built. When you start taking withdrawals, the sequence of positive and negative annual returns may be more critical to how long the assets last than the average annual rate of return over the life of a savings vehicle. Start by entering the amount of retirement income assets you'll start your retirement with:

What is the initial balance?