The order of when things happen can be your friend – or foe.
Take for instance an extended market downturn early in retirement, just as you start making portfolio withdrawals. This unlucky turn of events, if not managed properly, could make a serious dent in your portfolio. There’s always a chance that ongoing withdrawals deplete your portfolio before the market goes up again.
This is what’s called sequence of returns risk, and it’s a significant blind spot in retirement. So much so that financial professionals often dub the five years up to and after retiring the “retirement red zone.”
The good news is you’ve got us in your corner to give you crucial perspective on managing these sorts of risks. We can help you manage sequence of returns risk through:
- Dynamic retirement income planning
- Income diversification strategies
- Portfolio stress-testing
If you want to dive deeper, this article offers even more information on strategies for preserving your future spending power.
We’re always here to discuss any topic on your radar so you can plan ahead as best as you can. If you have any questions, give us a shout. It’s who we are. It’s what we do.
Warmest regards,
Jon
Investing involves risk and investors may incur a profit or a loss. Diversification and asset allocation do not ensure a profit or protect against a loss.
