Today we will be discussing one of the biggest factors to consider when transitioning and saving for retirement: sequence of return risk. This is the risk that comes from the order in which your investment returns occur. In other words, the sequence of return risk is the potential that the market declines at the beginning of your retirement, significantly reducing the longevity of your portfolio. So, how do we prepare for this? That is precisely what I will be going over in this episode.

When you’re saving, you don’t need to put a lot of thought into the sequence of return risk because you’re putting your money away on a regular basis, and you’ve figured out your savings plan based on your goals and your lifestyle. However, in retirement, the game changes. Listen in as I share why simply creating a projection is not the same as a plan, as well as several examples to help you understand how the sequence of returns works.

What You’ll Learn In Today’s Episode:

  • What sequence of return risk is.
  • How a decline in the market at the beginning of your retirement could be an issue.
  • Why a projection is not a plan.
  • How the sequence of return changes things when you start to withdraw money from a portfolio.
  • Why you should never make financial decisions based on emotions.

Ideas Worth Sharing:

“A projection is not a plan. It’s really just a starting point.” – Joe Curry

“Sequence of return risk is one of the biggest differences between saving for retirement and withdrawing from a portfolio to create income in retirement.” – Joe Curry

”You don’t want to make decisions about your portfolio based on emotions.” – Joe Curry

Resources In Today’s Episode:

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