"SEQUENCE-OF-RETURN risk has long been a major concern among retirees—and it’s a real danger right now for those who just quit the workforce or soon will. Also known simply as sequence risk, it refers to the chance that the market declines sharply, forcing retirees to sell investments at depressed prices to generate income."
Sound like today's situation with investment losses and high inflation? Keep reading...
"Wade Pfau, a leading retirement researcher, published a paper highlighting the danger involved. As he makes clear, a few years of market losses coupled with portfolio withdrawals can decimate savings, increasing the risk that a retiree will run out of money."
Richard Conner explains how to counteract sequence-of-return risk in his Humble Dollar https://humbledollar.com/ blog post "Beginning Badly." Learn five ways to structure retirement income to lessen sequence risk’s impact:
1. Annuitize. (Search for the links to annuities in this blog)
2. Cash bucket.
3. Reduce spending.
4. Work.
5. Social Security. (But I caution against taking SS before age 70 unless you expect to die young.)
Get the details at: https://humbledollar.com/2022/09/beginning-badly/?utm_source=mailpoet&utm_medium=email&utm_campaign=another-ses-test_7
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