This document discusses how using an average expected rate of return to plan for retirement can underestimate the risks posed by market volatility and downturns. It shows through examples how negative returns early in retirement can deplete savings to the point where recovery is impossible, even if markets later rebound. It advocates using strategies to transfer investment and longevity risks to a third party in order to "disaster proof" retirement and ensure income lasts for life regardless of market conditions. The document suggests getting a free retirement stress test to assess risks and determine if current plans are resilient enough to protect against financial disaster in retirement.

1. Wall Street’s Cruel Retirement Hoax! Will Deceptive Wall Street Math Turn Your Retirement Dream Into a Nightmare?

3. Yet, in planning assumptions, an average rate of return (e.g. 7%) is normally used. This doesn’t account for the up and down movements of the market and hides your true risk.Foundational Asset Management™

5. More importantly, negative returns early in retirement can create disastrous conditions from which recovery is nearly impossible if lifetime income is your goal.

6. So, it may make sense to transfer your investment and longevity risk to a 3rd party.Foundational Asset Management™

7. Recovery of Losses Edward Winslow, Author of, Blind Faith, “96% of professional money managers do worse than the S&P 500 index”. “It will take the average household over thirty years to recover the wealth lost in 2000 and 2001 from market declines”. Foundational Asset Management™

8. Protected Investment Edward Winslow, Author of, Blind Faith, “If unprotected against loss, an investment in stock or an equity mutual fund is nothing more than a gamble”. “The primary objective of an intelligent investment strategy should be to preserve capital and build on it at a consistent, moderate rate in both bull and bear markets”. Foundational Asset Management™

10. The first two slides show a Bull Market followed by a Bear Market. The next two slides show a Down Market followed by a Bull Market.

11. Will there be any difference in the ending values?Foundational Asset Management™

12. Impact of Average -Vs- Variable Returns Accumulation Phase – 1st 10 Years This calculator, used throughout the presentation, will show the impact of variable returns. For our example here, we will start with a beginning investment of $300,000 and illustrate what happens in both the accumulation and income phases. Foundational Asset Management™

13. Impact of Average -Vs- Variable Returns Accumulation Phase – 1st 10 Years Here is the first 10 years of your money in a bull market while it is in the accumulation phase. Notice the difference between the average return of 12.05% and the actual rate of 8.37%. Foundational Asset Management™

14. Impact of Average -Vs- Variable Returns Accumulation Phase – 2nd 10 Years Now your money enters a 10 year period of volatility reaching some high- highs and low-lows ending with very little return to show for it. Very much like the 10 years from 1999 – 2009. Notice the ending value of $789,192. Foundational Asset Management™

15. Impact of Average -Vs- Variable Returns Accumulation Phase – 1st 10 years Now we have reversed the order of the up & down markets. Do you think it has any impact on the 20 year outcome? Let’s see what the next 10 years brings. Foundational Asset Management™

16. Impact of Average -Vs- Variable Returns Accumulation Phase – 2nd 10 Years Remember the ending value from the first 20 years? It was $789,192 , the same as it is for this 20 years. So you can see that the sequence or variability of returns had no impact on your money during the accumulation phase, assuming you remained fully invested. Foundational Asset Management™

18. Again, the first slides show a Bull Market followed by a Bear Market. The next two slides show a Down Market followed by a Bull Market.

19. We just saw that the variability of returns had no impact during the accumulation phase. BUT, will you be so lucky when it comes to your retirement income security? Foundational Asset Management™

20. Impact of Average -Vs- Variable Returns Retirement Income Phase – 1st 10 Years Now, you have retired with $789,192 and you need it to provide you and your spouse an income for life. Let’s look at the impact of taking out an annual income of $35,514 growing with a 2.5% inflation rate. This slide and the next one show you retiring into an up market followed by a down market. At the end of the first 10 years, so far so good. Foundational Asset Management™

21. Impact of Average -Vs- Variable Returns Retirement Income Phase – 2nd 10 Years Now the bear market hits and while you are down from the $1,276,994 you had at the end of year 10, you still have more than the $789,192 you started with 20 years earlier. Foundational Asset Management™

22. Impact of Average -Vs- Variable Returns What if you are unlucky enough to retire into a disastrous down market first, like millions of Americans did back in 1999. Notice your ending value now is down to $458,991; HOW DOES THIS MAKE YOU FEEL! Retirement Income Phase – 1st 10 Years Foundational Asset Management™

23. Impact of Average -Vs- Variable Returns Retirement Income Phase – 2nd 10 Years As you can see, your future would not be so bright even with the big returns of the bull market. Your early losses in the first 10 years combined with your income withdrawals are too much to overcome. Now left with $402,793 at the end of 20 years you will run out of money in another 6 to 9 years depending on future returns. A retirement disaster in the making! Could it have been avoided? Foundational Asset Management™

25. Under the second you rush to the safety of CD’s but then after 2 years of big market gains you jump back into the market.Foundational Asset Management™

26. swear off wall street Flee to safety then back to market Under scenario one you have rushed to the safety of CD’s, but the early losses are to much to overcome and your retirement nightmare is a reality; you‘re broke in 3 to 4 years . Foundational Asset Management™

27. swear off wall street Flee to safety then back to market Under scenario two you rush to the safety of CD’s. Then like so many investors, after missing 2 years of big returns in the market, you decide to expose yourself to market risk once again for the hope of continued higher returns. Congratulations, while not totally avoiding retirement disaster, this typical scenario now staved off the POOR HOUSE for 4 to 5 years. Foundational Asset Management™

29. Reduce the amount you take out of your accounts to try and make your money last longer?

30. Sell your home?Do You Have A Backup Plan; A Plan B? Foundational Asset Management™

32. There is NO “do over” when it comes to your retirement income. YOU MUST Disaster-Proof Your Retirement™ so un-managed investment and longevity risk doesn’t result in you going BROKE.To paraphrase a famous Clint Eastwood movie line, “Ask yourself, do you feel lucky today, well do you?” Foundational Asset Management™

34. Has your current advisor Stress Tested your retirement income plan so you know how you would come through in another unforeseen market meltdown?

35. Remember, Wall Street math works fine when you are in the accumulation phase, but can be disastrous in the income phase. When would you want to know if you were going to run out of money, NOW when you can Disaster-Proof Your Retirement™ or down the road when it may be to late? Foundational Asset Management™

37. We will also show you how to Disaster-Proof Your Retirement™ using breakthrough Anti-Risk Foundational Asset income strategies that allow you and yours to Retire and stay Retired, without the fear and worry of running out of money NO MATTER what happens to Interest Rates or the Stock Market.Foundational Asset Management™

39. There are many other risks you will encounter in your retirement years. There are two more major areas that you must address:

40. Increasing Income and Estate Taxes

41. Major health related events

42. Early death of a spouse

43. Long term disability and confinementFoundational Asset Management™

45. Call today to get your FREE Retirement Stress Test and Disaster-Proof Analysis 1-800-380-7889 Stop worrying about your retirement. Put a Disaster-Proof Retirement Plan™ in place today. We’ll even help you relax with a FREE 1 hour massage just for taking the test. Call NOW! Foundational Asset Management™