I talked with a group of financial advisors in recent weeks about retirement planning and one of the topics that kept coming up was sequence of return risk.
This is basically the idea that you if experience poor returns or a huge bear market when withdrawing your capital during retirement it could throw off your plans.
One of the reasons this risk is so difficult to prepare for is because it’s more or less based on luck. So much of this depends on timing, both good and bad, in terms of when you begin drawing down your money.
Written By: Ben Carlson, CFA
Published By: www.awealthofcommonsense.com