You Can Choose When You Retire—Not the Market You Retire Into

 

 

Sequence of returns: you can control when you retire, but not what type of market you retire into

 

Related: The Diversification Advantage Investors Counted On Is Changing

Source: This hypothetical is for illustrative purposes only and does not reflect the performance of any product. Returns use the S&P 500 Index, price only (dividends not reinvested), from January 1, 2000, to December 31, 2025. Assumes Investor A begins withdrawing $50k from $1M in Jan. 2000, Investor B begins withdrawing $50k from $1M in Jan. 2003. Average annual return is a simple average of the yearly returns and does not account for cash flows. Indices are unmanaged and unavailable for direct investment. Past performance does not indicate future results