The Lost Decade Revisited: How FIAs Protected Retirement Income (2000-2010)

From 2000 to 2010, the S&P 500 returned approximately -0.95% total. It was called "the lost decade." What would have happened with different strategies? Strategy $500K Starting End Value Income Generated S&P 500 Index $500K $495K $0 (loss) 60/40 Portfolio $500K $540K $20K/yr withdrawals FIA (8% cap, annual PTP) $500K $580K 0% floor protected MYGA (4.5% fixed) $500K $775K Guaranteed growth The FIA advantage: The 0% floor meant zero losses in 2001, 2002, and 2008. Small gains in positive years compounded. No sequence risk. The MYGA reality check: Fixed rates in that era (4-5%) would have been the clear winner. Today's MYGA rates are actually higher. Past performance doesn't predict future results, but the math of loss avoidance is universal.