The ICA Guide
The ICA Guide
The ICA Guide
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<strong>The</strong> Klausens invested their $200,000 in <strong>ICA</strong> and decided to take monthly withdrawals at an annual rate of<br />
5% of their account value at the end of each previous year.<br />
Vivian and Joe Klausen<br />
Original investment $200,000<br />
Total withdrawals $344,915<br />
Value of investment<br />
as of December 31, 2011<br />
$342,645<br />
Annual withdrawal amounts from <strong>ICA</strong><br />
… while the<br />
Klausens’ investment<br />
in <strong>ICA</strong> allowed their<br />
withdrawals to grow<br />
in most years.<br />
,540 $14,540 $14,540<br />
That meant they took $10,000 in<br />
1992, representing 5% of their original<br />
investment. In 1993, they took 5%<br />
of their account balance as of the end<br />
of 1992, and so on.<br />
Because the value of their investment<br />
has gone up and down from year to year,<br />
their income has varied. <strong>The</strong>y started out<br />
living on less than the Boones. But the<br />
Klausens’ income generally grew over<br />
time — and their original investment<br />
increased substantially. Over the long<br />
term, they enjoyed greater rewards than<br />
the Boones because, by investing in a<br />
portfolio of stocks, they chose to accept<br />
greater volatility, recognizing they could<br />
lose money.<br />
$10,000<br />
$14,083<br />
$20,338<br />
Despite recent volatility, the last 20 years<br />
were generally good for stocks and for<br />
<strong>ICA</strong>. In all 59 of the 20-year periods in<br />
<strong>ICA</strong>’s lifetime, in fact, the Klausens would<br />
have done better than the Boones —<br />
often much better.<br />
$23,215<br />
$18,355<br />
02 2007 2011 1992 1997 2002 2007 2011<br />
<strong>The</strong> hypothetical examples on pages 4 and 5 reflect actual historical results. Your investment experience, of course, will depend on the amount you invest and<br />
when you invest. Treasury bonds are guaranteed by the U.S. government; fund shares are not.<br />
<strong>The</strong> <strong>ICA</strong> <strong>Guide</strong> 5