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Retirement Income Management

PERSPECTIVES IN THIS ISSUE  Retirement Retirement income management The scary word for retirees: Inflation Estate planning Marriage, Israeli style Timing may be more important than many realize. Investor truism: Time in the market is more important than timing the market. For those with a long-term time horizon, volatility in the financial markets is relatively unimportant. Imagine that a portfolio has an aver- age 10-year return of a modest  5%, but the yearly returns are 25%, 18%, 3%,  -4%,  -28%,  -2%,  8%,  10%, 12%, and 8%. Does it matter when the  bad years occur? It does not. Table One below shows what would happen to $500,000 over ten years. On the left, the bear market comes early, pushing the portfolio into loss territo- ry, from which it recovers only after eight years. Putting the bull market first, as on the right, causes the port- folio to soar, but when the inevitable bear  market 

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