Reaching retirement doesn’t mean you can put your plan in cruise control because plenty of risks remain. One that all recent retirees are dealing with is the sequence of returns risk. This is an overlooked risk when someone is stepping into retirement that doesn’t get nearly enough attention, in our opinion.
The five years before and the first five years in retirement are the most critical because of the risk that comes from the order (or sequence) from which your investment returns occur. If the market declines a lot in the early years of retirement, your withdrawals could significantly reduce the longevity of the portfolio.
In this episode, Laura Stover, RFC® and Darlene Tucker, CFP® will tackle this risk head-on and explain the impact it can have over the course of your retirement. Plus, they’ll take you through some of the safeguards that can be put in place to protect you from the inevitable downturns in the market to ensure savings can last you throughout retirement.
Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/
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Timestamps (show notes):
4:06 – What is sequence of return risk and why is it important?
8:52 – What are some of the safeguards you can put in place?
14:57 – You can’t just eliminate market risk altogether
22:11 – Average rate of return vs dollars in the portfolio
28:52 – Segregation of asset types is key
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