SPDA Positioning Idea #1

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How you pack your bags in pre-retirement will have major impact on your retirement journey.

What’s the default path during accumulation? Investments? Commodities?

On the day of retirement the dynamics of what your money needs to do changes overnight. This where the 3% or 4% rule has become the topic of conversation. What is a sustainable rate of withdrawal from your portfolio to make your money last through a 30 year retirement? At a 4% withdrawal rate there is still a 10 to 20% chance of failure. Would you board a flight on your next vacation knowing you only had enough gas to get 80% of the way there?

What's Different About Retirement?

  • Reduced earnings capacity

  • Visible spending constraint

  • Heightened investment risk

  • Unknown longevity

  • Spending shocks

  • Heightened investment

Solution: Focus Income

Connect Annuity Features: Terminal Illness

  • Nursing Care Access
  • Income Doubler on GLIR

Example: How sizable does a portfolio need to be with a 3.5% withdrawal rate to provide 50,000 of income to age 90? It would take 1.48ML. Keep in mind still a chance that it might not last all subject to market risk. Add that this does not include inflation, taxes or management fees. It is purely sequence of return risk.

If you were able utilize an annuity in your strategy that could guarantee income and assume the guaranteed income rate is 5% it would only take 1ml to accomplish the same thing and no market risk! If you had a 6% rate that would only require $833,000.

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Products issued by

No bank or credit union guarantee | Not a deposit | Not FDIC/NCUA insured | May lose value | Not insured by any federal or state government agency

Guarantees are dependent upon the claims-paying ability of the issuing company.

National Life Group® is a trade name of National Life Insurance Company, founded in Montpelier, VT in 1848, Life Insurance Company of the Southwest, Addison, TX, chartered in 1955, and their affiliates. Each company of National Life Group is solely responsible for its own financial condition and contractual obligations. Life Insurance Company of the Southwest is not an authorized insurer in New York and does not conduct insurance business in New York.


Cat No 106554(1222)