Downturn Defense
planning
Let us help you protect your retirement income from market volatility.
 

We’re currently in one of the longest running bull markets in history. Since March 2009, the S&P 500 has risen 249 percent. After nearly a decade of growth, it’s easy to shrug off a potential downturn.

But if history repeats, we’re due for a correction. And you may need help to withstand the next downturn or bear market.

 

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Watch this two-minute video about the history of market bubbles and bursts.

Of investors are concerned about a market correction.*

Of investors say a downturn would affect their plans to retire.*

Middle-aged stock investors have $210,051 in the stock market today.*

One in 10 portfolios reduced by over 50% in 2008.*

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Timing risk: see how portfolios change based on retirement year.

Consider a hypothetical scenario where two people —Polly and Peter— have nearly identical situations but have completely different outcomes due to one key difference: when they each decided to retire. Use the chart below to see how the unfortunate timing of Peter’s market losses causes a major impact to his assets.

Polly

RETIRED DURING BULL MARKET
 
  • Retires at age 65 in 1995
  • Has retirement portfolio worth $250,000
  • Withdraws 5% of original $250,000 portfolio value or $12,500 annually for all years
  • Average annualized return over 18 years is 11.74%
  • 18 years later, portfolio is worth $609,650

Peter

RETIRED DURING BEAR MARKET
 
  • Retires at age 65 in 2000
  • Has retirement portfolio worth $250,000
  • Withdraws 5% of original $250,000 portfolio value or $12,500 annually for all years
  • Average annualized return over 18 years is 7.03%
  • 18 years later, portfolio is worth $79,520

 

 

Use the toggle switches to view the performance of each portfolio and compare their values after 18 years of retirement.

 
S & P 500

Dot-com Bubble of 2000-2002

After years of soaring speculations about the potential of any company with a “.com” in its name, the infamous “Dot-com” bubble finally burst. Following its peak in March of 2000, the NASDAQ ® Composite index fell 78% for 30 months.

Source:  http://economyandmarkets.com/markets/currencies/looks-just-like-late-stage-internet-bubble-bitcoin/ (12/19/2017)

Global Financial Crisis of 2007-2009

The Global Financial Crisis is considered the worst financial crisis since the Great Depression of the 1930s. It began in 2007 with a crisis in the subprime mortgage market in the U.S., and developed into a full-blown international banking catastrophe in 2008. 401(k) plan participants with $200,000 or more in their accounts saw the value of their portfolios drop by an average of more than 25%.

Source:  http://money.usnews.com/money/retirement/articles/2009/02/12/how-did-your-401k-really-stack-up-in-2008 (2/12/2009)

PAST S&P 500 INDEX PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE S&P 500 INDEX IS NOT AVAILABLE FOR DIRECT INVESTMENT. This hypothetical chart is for illustrative purposes only and not indicative of any particular investment product. The chart reflects reinvestment of dividends but does not reflect any product charges, fees or the impact of any taxes over the time periods shown, all of which if shown would lower performance.

The annual total returns of the S&P 500 are shown from 1/1/95 through 12/31/17, with each year beginning on 1/1 and ending 12/31 for each calendar year shown.

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Other helpful articles and resources.

Where to turn when bonds aren't the investment they used to be
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Don't gamble with your retirement income - help protect it
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U.S. investors overweight in stocks despite market fears study
DOWNLOAD ARTICLE 
 

Want More?

Continue your planning process with these additional resources.
 
ACCUMULATION

How to seek growth for your retirement.
INCOME

How to turn your savings into steady income.