Zero is the hero

You can't lose what the market never takes.

Both accounts start at $500,000 in retirement and withdraw $20,000 a year. The only difference is the 0% floor.

Index cap10%

Account value through the crash

Ending value gap

$563,667

In 2008 the market account fell 37% while the indexed account was credited 0% — same withdrawals, no loss year.

Market account today

$214,605

Indexed account today

$778,272

Sequence-of-returns risk

A loss while you are withdrawing income is permanent: you sell shares at the bottom and there are fewer left to recover. A 0% floor removes the loss year entirely, so withdrawals never compound a downturn.