The Sequence of Returns Risk

When the market drops at the wrong time, it can permanently derail your retirement — even with a $2 million nest egg.

Without a Policy — Final Balance

$161,777

After 20 years of withdrawals, a $2M portfolio is nearly depleted. One bad early sequence is all it takes.

With Policy Loans — Final Balance

$1,222,358

By borrowing from your policy during down years, the account ends with 7.5× more money.

⚠

The Danger Zone: The 5 Years Before & After Retirement This is when sequence risk is most dangerous. Large early losses — combined with ongoing withdrawals — can cause irreversible damage that even strong later returns cannot fix. A permanent life insurance policy gives you an alternate income source so you never have to sell at the worst time.

Account Balance Over 20 Years (2004–2023)

Without policy loans With policy loans ▲ Down years shaded

Year-by-Year Breakdown

GoFundMe cannot be an option.

Protect Your Retirement
From Day One

See how a permanent life insurance policy from NxtGen Equity can shield your family from sequence risk — and build wealth at the same time.

Build My Strategy →

Hypothetical example based on S&P 500® annual returns (last trading day, ex-dividends) 2004–2023. Starting balance: $2,000,000. Initial withdrawal: $115,000 increasing 3% annually to account for inflation. In the policy loan scenario, withdrawals are replaced with life insurance policy loans during negative return years (2008, 2015, 2018, 2022). Policy loans are generally not subject to income tax provided the contract is not a Modified Endowment Contract (MEC). Policy loans reduce cash value and death benefit and are subject to interest charges. Illustrations are not intended to predict future performance. Alternate assumptions could produce significantly different results. Source: North American Company for Life and Health Insurance®, 950NM-7 12-24. Life insurance products issued by North American Company for Life and Health Insurance®, West Des Moines, IA.