Issue link: https://resources.envestnet.com/i/1532497
IMPORTANT: The projections or other information generated by MoneyGuide software regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results are are not guarantees of future results. Assumes a 58-year-old male retiring at 65 with $1,273,000 in tax-deferred and $33,700 in taxable with a moderate risk tolerance. Based on a variable annuity with a Guaranteed Minimum Withdrawal Benefit (GMWB) $450,000 funding amount, deferral period until age 65 with 5% bonus and cost of 1.5%. This example of a product offering is emulated by including a 5% bonus and a 5% withdrawal rate. Note: This is in a test environment and subject to change. This is plan-dependent. Many scenarios result in a lower probability of success score. Social Security $200,000 $250,000 $150,000 $100,000 $50,000 $0 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 Portfolio Withdrawals Essential Shortfall Post Retirement Income Required Minimum Distributions Essential Goals Goals Portfolio Shortfall Strategy Income Check All Great Trial Best 708 0 500 Good Trial Median Trial Poor Trial Bad Trial 1,000 708 Recommended Scenario Cash Flow Probability With Strategy Income In Confidence Zone Probability of Success 71% 70% Probability of Success In Confidence Zone Without Strategy Income View Needs, Wants, & Wishes Return to Recommended Income Strategies Add Strategy Financial plans are a key component of how many financial professionals are delivering service and guidance to their clients. The Monte Carlo probability of success represents a conclusion drawn over 1,000 retirements and is a great tool to help financial professionals build great financial plans. However, clients only experience one retirement. If a plan has 71% chance of success, there's also a 29% chance that the client will have to make some changes in their portfolio at some point during the plan or a 29% chance that they'll run out of money if no changes are made. Monte Carlo Success ≠ Client Success 4