Why do some retirement strategies generate a retirement income profile that looks like a wave?
Heres what I think happens. In retirement strategies that allow for real raises, I can believe that in early years the real income increases because on average the markets do well. Not all scenarios will give raises, clearly, but on average I can see it. These raises then continue until they become too large (again on average) and need to be corrected back down. The degree of oscillation depends upon how good the timing is of the corrections. Poor corrections will allow large swings.
