Understanding the sequence of return risk in your portfolio is one of the most important things we can learn about while planning for retirement and yet there is not enough conversation out there on this topic. We need to understand this risk even more now with a disappointing job report and the current market volatility.
So, what is sequence risk then? It’s the risk that comes with the order in which your investment returns occur. In other words, if the market dips early in your retirement, is the longevity of your portfolio still secure? On today’s episode, we’ll discuss this little-known topic and how the Redefining Wealth Process® protects retirees throughout all of their retirement.
Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/
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Timestamps (show notes):
3:58 – What is sequence risk?
6:59 – Comparing Portfolio A and Portfolio B
11:13 – Going from 4% to 2.6% withdrawal
16:12 – Spending habits are changing
19:14 – How is the market adjusting?
23:31 – Preparing properly with your plan