my retirement withdrawals: will i outlive my money?

Mullooly Asset Management December 2012

My Retirement Withdrawals: Will I Outlive My Money?Mullooly Asset Management Podcast

December 5, 2012


Bad News

Not enough saved

Most take out too much each year


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


Fixed Percentage Distributions:If you take 4.50% per year - you could be taking a SMALLER dollar amount in the future, because your principal might be shrinking

4.5% on $400k = $18,000

4.5% on $380k = $17,100

4.5% on $360k = $16,200


Fixed Dollar Distributions:If you take $18,000 per year - you could be taking a LARGER percentage amount each year into the future, because your principal might be shrinking

$18,000 on $400k is 4.5%

$18,000 on $380k is 4.7%

$18,000 on $360k is 5.0%


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 (that's 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)


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


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


None of the securities mentioned in this (or any) podcast or video represent past specific recommendations of Mullooly Asset Management.

This video is NOT a recommendation to buy or sell any of the securities mentioned here.

If you’re relying on a podcast for investment advice, you are likely making a huge mistake.

We strongly urge our listeners to consult with their investment advisor before they make a decision to buy or sell any investment.


Mullooly Asset Management, LLC

support (at) mullooly (dot) net

732-223-9000

www.mullooly.net

my retirement withdrawals: will i outlive my money?

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