Protect Your Nest Egg

The good news is we are living longer but that means our retirement money has to last longer too.

Most focus on retirement savings accumulation, putting money in your IRA or 401k. But now you are in the use and preservation mode! 

Take the simple example of having $100,000 in an IRA mutual fund; 1,000 shares valued at $100 per share.

Your plan is to supplement your social security income with $5,000 from your IRA. So each year you plan to sell 50 shares (50 x $100 = $5,000)

But we see another market crash and your shares are only worth $80 each.

To receive that same $5,000 you will need to sell 62.5 shares; 12.5 shares more than you planned!

When the market comes back, you will have fewer shares to live on.