I am about to blow your mind.  Are you ready? Here is the scenario: Mr. Dickey retires in 1940 with $100,000.  He then proceeds to take out 5% per year ($5,000).  Each year he increases the amount by 3%.  Meaning, the 2nd year Mr. Dickey took about $5150, and the 3^rd year he took $5300.  Etc. Mr. Dickey also put all of his money into the S & P 500 Index (the 500 largest American stock companies). So the question is:  If Mr. Dickey lives 30 years, will he run out of money?  Well let’s take a look. So he started with $100,000, took out his withdrawals for 30 years, and ended up at the end of his life with $1,750,000. What a minute…….What?  How is that possible?  He must have just gotten lucky, right?  Hmmmm…. Let’s look at some other examples.

Years Money is Withdrawn	Original Amount	Total Amount Received	Ending Value
1940-1970	$100,000	$237,000	$1,750,000
1950-1980	$100,000	$237,000	$1,200,000
1960-1990	$100,000	$237,000	$474,000
1970-2000	$100,000	$237,000	$1,275,000
1980-2010	$100,000	$237,000	$1,100,000
1990-current	$100,000	$162,000	$598,000

Even I, a seasoned financial advisor am amazed at these numbers.  And it begs the question: What are we all so worried about? Plan. Invest. Live. Have a Blessed Week! Dave   The value of fixed-income securities may be affected by changing interest rates and changes in credit ratings of the securities. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. Indexes are unmanaged portfolios and individuals cannot invest directly in an index.  Actual results will vary. This communication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any securities or product, and does not constitute legal or tax advice. The information contained herein has been obtained from sources believed to be reliable but we do not guarantee accuracy or completeness. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional legal, tax, or accounting counsel. The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. The value of fixed-income securities may be affected by changing interest rates and changes in credit ratings of the securities.