An increase in spending of 1% can reduce overall wealth by 21% over the course of 20 years

A Spending Strategy Can Increase Long Term Wealth

Small changes in spending can have a significant impact on wealth. Consider the effect of a 1% increase in spending on a $20 million portfolio. Assuming 5.25% of annual portfolio growth, on average, and a 3% spending rate, the portfolio's value will grow to $31.3 million over 20 years. By increase the spending rate to 4%, the portfolio value decreases to $24.6 million. {1}

Active Wealth for the Long Term

Spend is just one of the five practices in our Active Wealth approach that we use to ensure our clients can build a legacy that stretches across market cycles and spans generations.

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  • Disclosure

1. For illustrative purposes only. Does not represent actualy client results. Growth of $20M at 5.25% for 20 years.