The Day Two Nest Eggs Parted Ways

Sam and Lisa both quit work with $1 million on January 1.
That October the stock market plunged 35 %.

• Sam’s balance: $650,000.
  

• Lisa’s balance: $1 million plus a fresh $5,800 paycheck sitting in checking.
  

Why the gap? Lisa used a crash-proof plan. Sam crossed his fingers.

Why Market Drops Hit Retirees Hardest

When you’re still earning a salary, a market dip is annoying but you keep adding new money.

When you’re retired, you’re pulling money out. Taking withdrawals from a falling market is like trying to bail water from a leaking boat while drilling new holes.

Pros call this sequence-of-returns risk. Translation:

• A big loss in the first few years of retirement can drain a nest egg decades early.
  

• The order of returns matters more than the average return.

The Two-Layer Crash-Proof Plan

1. The Guaranteed Paycheck — SDIC

A Specially Designed Insurance Contract (SDIC) turns part of your savings into a private pension:

• Principal never drops when markets crash.
  

• Sends a lifetime paycheck, often tax-free.
  

• Whatever is left can pass straight to your heirs.
  

Think of it as rewiring your 401(k) into a salary that never calls in sick.

2. The Tax-Timing Valve

Taxes are certain—the amount you pay isn’t.
Moves like Roth conversions and tax-free policy loans let you choose when to recognise income so you keep more in your pocket—especially after a market drop when every dollar counts.

Case Study: Lisa’s Lifetime Paycheck

• Age: 60
  

• Rollover: $600 k into SDIC → $5,800 every month for life
  

• Buffer: $100 k cash value life policy (covers two years of bills)
  

• Market account: $300 k left invested for growth
  

When the crash hit, Lisa’s paycheck never skipped. Her buffer paid extras. The market portion got time to rebound.

Side-by-Side: Sam vs. Lisa (10 Years Later)

Build Your Own Shield in 3 Simple Steps

1. Pinpoint Your Income Gap

   • Add up monthly must-haves.
     

   • Subtract Social Security or pensions.
     

   • The shortfall is your Paycheck Gap.
     
     

2. Convert Enough Assets to an SDIC

   • Aim to cover 100 % of the gap with guaranteed income.
     

   • Start the rollover early to spread out any taxes.
     
     

3. Install a Tax-Timing Valve

   • Roth-convert while you’re in a lower bracket.
     

   • Use policy loans in high-tax years to keep your AGI low.
     

Quick Check: Do you have (1) a guaranteed paycheck, (2) life expenses covered comfortably, (3) a plan to control taxes?

If any box is empty, the market still controls your future.

If You Skip This…

History shows a 30 %+ crash roughly every decade. Ignore protection and you could relive 2008 with no paycheck to catch you. Embrace it and you can sleep through headlines others dread.

Take the Next Step—Book Your Wealth Acceleration Session

In one free 45-minute call you will:

• See exactly how much of your money is at risk today.
  

• Get a personalised SDIC income quote—down to the dollar.
  

• Learn two quick wins to trim taxes within 90 days.
  

→ Reserve your session here (spots fill fast).
Give your retirement a paycheck you can count on—whatever the market decides tomorrow.