SCENARIO STUDIO

How could market moves affect spending flexibility?

Change the assumptions below to see a sample household’s spending rate and liquid reserve coverage. These figures are illustrative and are not connected to your accounts.

Choose assumptions

Sample starting portfolio: $2,400,000 · Liquid reserves: $210,000

Stock market change -20%Portfolio exposed to stocks 60%Planned annual spending $120,000

Your sample guardrails

Withdrawal-rate limit 5.5%Minimum liquid reserve 2 years

What changes in this scenario

Calculated from your selected assumptions

Portfolio after shock$2,112,000From $2,400,000

Spending rate after shock5.7%From 5% before shock

Liquid reserve coverage1.8 yearsAssumes reserves do not change with stocks

Guardrail check

Above your 5.5% spending-rate limit

Below your 2-year reserve minimum

Questions to discuss with a professional

How much of annual spending is essential, flexible, or temporary?
Would the liquid reserve cover near-term obligations without forcing a sale?
How would taxes and account withdrawal order change the result?
Would a verified market shock justify revisiting your spending guardrails?

A single market assumption does not predict returns or determine what you should spend. No account record or actual plan is changed.