I won’t do the math for you kieth.
It’s called “Sequence of returns risk”.
Feb, Mar, Apr, May, and June, represent months where (depending on which date you choose for your personal retirement acct withdrawal) a person’s withdrawals have considerably heavier effect, AND, by late April there would be considerably less to recover with. So their account would still be far lower than it would have been without the tariff issue....
But I got a new Audi Q7 out of it, so I’ve been compensated for it.
Geez Ted, why not go back 16 years so you could include the Kenyan?
Reality is, a guy retired pre-social security age with a 1 mil portfolio Feb 1st, that takes his monthly withdrawal of an annual 4% to cover his household, is still out more than 50k to date.
That’s 15 months of monthly withdrawals at the common 4% withdrawal rate gone in days.
I can certainly understand why you won't do the math Clapper Zapper.
First off, we know nothing about your hypothetical $ 1 million retirement portfolio. Unless the entire amount was invested in Tesla stock, your numbers sound fishy, if not totally dishonest.
Of course, Tesla stock was slammed by investors after uncivilized Liberal Left Democrats attacked Elon Musk, his company, and his cars... for the sin of exposing Democrat waste, fraud, and corruption.
But let's assume the money was conservatively invested and earning about a 4% dividend, which is easy without a financial advisor. The early retiree is taking a monthly distribution at a 4% annualized rate on the balance. So with a $ 1 million balance at the peak before the tariff induced correction, the annual distribution would be 4% of a million, or $40,000.
The monthly distribution before any correction would have been 1/12 of $40k or $3,333. And we'll assume the account would still continue to earn dividends of 4%, even though the March-April decline presumably began. If we assume the account value dropped 20%, then the statement balance might have temporarily fell to about $800k. That means the next couple monthly distributions would be a bit lower, at around $2,666 (keeping with our total annual distribution of an annualized 4% of the balance).
But then, lo and behold, the correction is short lived. The S&P 500 is soon back to where it was before Democrats claimed the world was ending. And the account balance is about back to the original amount by late June. Who in Hell took 15 months of of monthly distributions during that brief correction, and why? More importantly, why would you blame an event like that on Trump, his tariffs, or the short correction... unless you were creating another false narrative???
If our hypothetical retiree stayed the course, and kept right on taking a monthly distribution at a 4% annualized rate, he actually lost very little, and simply had a few months with a slightly lower stipend. If he kept right on taking $3,333 per month... then his balance now might be a couple grand less.
But that's a far cry from the $50,000 loss you tried to claim. Your shady math is something like the Biden Administration spending $42 billion on High Speed Internet... without connecting a single household.
Now for the next question... with the world ending, the sky falling, blood in the streets, Weimar Republic style hyperinflation causing lowly JABC doubles to sell for more than the British Crown Jewels... with all that... how did you get a new Audi Q7 out of it?
Are you perhaps being compensated by George Soros or the DNC for being a propagandist and disseminator of Democrat lies?
