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February 16, 2009

Retirement Wealth Evaporation

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Definition

The shrinking in value of retirement asset , resulting in the reduction of amount available for retirement wealth decumulation.

Wealth evaporation usually occurs as a result of stock market reduction and other market conditions that reduces the purchasing power of the dollar, as well as reduce the market value of property .

Individuals often experience an evaporation in retirement wealth during bear markets, as their retirement portfolios shrink in value. Once such example is the bear market of the later 1990’s to the early 2000’s, where the retirement account balance of many participants shrunk in value.

 

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Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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