Sequence of Returns Risk

So, what is Sequence of Returns Risk? It is the danger retirees face of receiving lower or negative returns early in retirement when withdrawals are made from their underlying investment accounts. Two retirees with identical wealth can have entirely different financial outcomes, depending on when they start retirement. A retiree starting out at the bottom of a bear market will have better investing success in retirement than another starting out at a market peak, even if the long-term averages are the same. In short, it has to be understood that it is not just the average Read the Full Story