Whole Life Can Miss the Mark and Still Be Better

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5M ago 29:44

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In this episode, we explore the impact of asset variability on retirement income. We discuss why the 4% withdrawal rule has proven effective despite assumptions of higher returns, and how market volatility affects sustainable withdrawal rates.

You'll learn about the challenges of retirement income modeling, using examples from Monte Carlo simulations to illustrate how different asset allocations and withdrawal rates influence the probability of retirement savings lasting 30 years. We'll compare scenarios with varying stock and bond allocations, demonstrating how lower-volatility portfolios can sometimes outperform higher-return, higher-risk options for income generation.

The episode then shifts focus to whole life insurance as a retirement planning tool. You'll discover how its narrower range of returns, often seen as a disadvantage during accumulation, can become an asset when generating retirement income. We'll explain why the reduced volatility of whole life insurance can lead to more predictable income streams and potentially lower tax liabilities.

Using a practical example, you'll see how a whole life policy started at age 40 could provide substantial retirement income, and how it might perform under various dividend scenarios. This comparison highlights the potential advantages of whole life insurance in creating stable retirement income, even when it doesn't meet its highest projections.

By the end of the episode, you'll have a clearer understanding of how asset volatility affects retirement income strategies and why whole life insurance might play a valuable role in your retirement planning. ______________________________

If you'd like to see what a whole life policy can do to help you stabilize your future retirement income, please click here to get in touch with us.

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