Sequence of Returns Risk Model

Compare a traditional stock bond portfolio against one with guaranteed lifetime income — using actual historical S&P 500 and bond return data.

Model Inputs

Portfolio Setup

Starting Year (1928–2015)

Starting Age

*Must be between 55 and 70

Investment Horizon

Current Portfolio Assumptions

Current Portfolio Value at Starting Year ($)

Retirement Year

Assumed After-Tax Income Needed in Retirement ($)

Assumed Annual Increase in Retirement Income (Inflation %)

Allocation & Tax Rates

Equity Allocation (%)

Bond / GLI Alloc. (%)

40%

Equity Tax Rate (%)

Bond Tax Rate (%)

Guaranteed Lifetime Income Parameters

Annual GLI Payout —

Fixed amount starting at retirement

Final Value — Without GLI

—

Run model to see results

Final Value — With GLI

—

Run model to see results

Portfolio Gap — With GLI vs Without GLI

—

Portfolio Value Over Time

End-of-year total portfolio value — both scenarios side by side

Without GLI

With Guaranteed Income

Year-by-Year Detail

Full breakdown of both portfolio scenarios

Yr	Age	Yr	WITHOUT GUARANTEED INCOME						WITH GUARANTEED INCOME
Yr	Age	Yr	BOY Value	S&P Ret.	Eq. Returns	Bond Returns	Withdrawal	EOY Value	BOY Total	Eq. Returns	GLI Payout	Withdrawal	EOY Equity	EOY Total
Enter inputs and run the model to see results.

Disclaimer: This model uses actual historical S&P 500 and bond market return data to compare a traditional stock/bond portfolio against one that incorporates guaranteed lifetime income. Guaranteed income rates are based on prevailing bond yields at the time of purchase, adjusted for age and deferral period. Retirement income is assumed to grow annually at the selected inflation rate. This illustration is for educational purposes only and does not constitute investment, tax, or financial planning advice. Past performance does not guarantee future results.