Ep # 6 - Retirement Risk #1 – Sequence of Returns and Why the Game Changes in Retirement
In this episode of Your Retirement Planning Simplified, we dive into one of the most critical yet often-overlooked factors in retirement planning: sequence of return risk. This risk refers to the order in which your investment returns occur, particularly during the early years of retirement. If the market declines when you start withdrawing from your portfolio, it could severely impact the longevity of your savings.
While sequence of return risk isn’t a concern during the accumulation phase of saving for retirement, it becomes crucial once you retire. We’ll explain why a simple financial projection isn’t enough and how a comprehensive retirement plan is essential. With real-world examples, you'll understand how market fluctuations can affect your retirement income and what strategies can help safeguard your nest egg.
Tune in to learn how to protect your portfolio from market downturns and ensure a stable and secure retirement, no matter what the market brings.
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:
Joseph Curry: LinkedIn
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