196 Don’t Make Me Say I Told You So Client 1: Negative Returns Later On End of Year Rate of Return 1 2 3 4 5 6 7 8 9 10 24% 20% 16% 12% 8% 4% 0% -8% -10% -20% Average Annual Rate of Return Withdrawal $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 3.7% Account Value at End of Year $1,000,000 $1,178,000 $1,353,600 $1,512,176 $1,637,637 $1,714,648 $1,731,234 $1,681,234 $1,500,735 $1,305,662 $1,004,529 Client 2: Negative Returns Early On End of Year Rate of Return 1 2 3 4 5 6 7 8 9 10 -20% -10% -8% 0% 4% 8% 12% 16% 20% 24% Average Annual Rate of Return Withdrawal $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 3.7% Account Value at End of Year $1,000,000 $760,000 $639,000 $541,880 $491,880 $459,555 $442,320 $439,398 $451,702 $482,042 $535,732 This is a hypothetical example for illustration purposes only. Actual investor results will vary. Chapter 5: Things That Can Wreck Your Retirement
