The Tale of Two Rollovers: John vs. Jane
The Tale of Two Rollovers: John vs. Jane
In 2022, the S&P 500 dropped roughly 18%. Both John and Jane had $500,000 in their retirement accounts from previous employers. Here is how their different decisions changed their retirement dates.
John: The "Set it and Forget it" Strategy
John left his $500,000 in his former employer’s 401(k). He figured the market always bounces back.
- The Drop: When the market fell 18%, John’s account lost $90,000. His balance became $410,000.
- The Recovery: To get back to his original $500,000, John didn't just need an 18% gain—he needed a 22% gainjust to break even.
- The Result: John spent nearly two years "treading water" just to get back to where he started. He lost two years of growth and two years of sleep.
Jane: The "OGK Protected" Strategy
Jane decided to perform a 401(k) Rollover into a protected indexed account with a 0% Floor.
- The Drop: When the market fell 18%, Jane’s "floor" activated. Her account value stayed exactly at $500,000. She lost $0.
- The Recovery: When the market began to recover, Jane didn't have to "make up ground." Every dollar of market gain was new growth on top of her $500,000.
- The Result: Jane stayed on track for her retirement date. While John was struggling to get back to zero, Jane’s money was already working for her future.
The Lesson for Your Retirement
The math of the "0% Floor" is simple but powerful. When you eliminate the big losses, you don't need "blockbuster" gains to win. You win through consistency and protection.
At OGK Financial Services, we help you become "Jane." We specialize in identifying "at-risk" retirement accounts and moving them into vehicles that capture market upside while guaranteeing you never have to experience a "John" year.