Client wrote about a neighbor who celebrated her 106th birthday! He asked, “If my wife and I live that long, will we have enough money?” His question suggests the fear of not having enough money, and nothing I say will guarantee that his money will last until his last day or that his money will run-out on his last day.
Limiting cash distributions within a range of 5% to 7% assures that the principal amount of the account will benefit from market adjustments (upward, we hope). Exceeding annual distributions of 7% could jeopardize account growth.
