My Retirement Withdrawals: Will I Outlive My Money?

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The number one question concerning retirement withdrawals is, "Will I outlive my money?". The bad news is that most people will probably not outlive their money the way they are currently doing things. Learn more in this presentation.

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My Retirement Withdrawals: Will I Outlive My Money?

  1. 1. Mullooly Asset Management Podcast December 5, 2012Mullooly Asset Management December 2012
  2. 2. Bad News Not enough saved Most take out too much each year Mullooly Asset Management December 2012
  3. 3. Suppose:$400,000 at retirement:• If you take $18,000 ($1500/month) you are taking a fixed dollar amount from your account• By the way, $18,000 on a $400,000 account is a 4.5% distribution Mullooly Asset Management December 2012
  4. 4. Fixed Percentage Distributions:If you take 4.50% per year - you could be taking a SMALLERdollar amount in the future, because your principal might beshrinking4.5% on $400k = $18,0004.5% on $380k = $17,1004.5% on $360k = $16,200 Mullooly Asset Management December 2012
  5. 5. Fixed Dollar Distributions:If you take $18,000 per year - you could be taking a LARGERpercentage amount each year into the future, because yourprincipal might be shrinking$18,000 on $400k is 4.5%$18,000 on $380k is 4.7%$18,000 on $360k is 5.0% Mullooly Asset Management December 2012
  6. 6. If you are "buy & hold" in the S&P 500 - a large cap fund(typical 401k choices)- S&P 500 in 2000: 1400- S&P 500 in 2012: 1400 (thats 12 years later, no gain)- S&P 500 in 2007: the high was actually over 1500- S&P 500 in 2012: 1400 (so you are still down) Mullooly Asset Management December 2012
  7. 7. How Do You Beat All of That? Most people do not have enough saved Most people take out too much each year Consider the smallest percentage you can take out? 3%, no growth, age 65 = 33 years Mullooly Asset Management December 2012
  8. 8.  Do whatever you can to avoid large losses while investing (where managing the risk with point & figure charts can help) Get out of debt as quickly as possible Mullooly Asset Management December 2012
  9. 9. None of the securities mentioned in this (or any) podcast orvideo represent past specific recommendations of MulloolyAsset Management.This video is NOT a recommendation to buy or sell any of thesecurities mentioned here.If you’re relying on a podcast for investment advice, you arelikely making a huge mistake.We strongly urge our listeners to consult with theirinvestment advisor before they make a decision to buy or sellany investment. Mullooly Asset Management December 2012
  10. 10. Mullooly Asset Management, LLC support (at) mullooly (dot) net 732-223-9000 www.mullooly.net Mullooly Asset Management December 2012

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