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Michael Kitces: Market Downturns In First Few Years Of Retirement Can Thwart Best-Laid Plans

TedTed
in Fund Discussions
FYI: Portfolio returns in the early years of retirement could have a large bearing on the success or failure of a retirement income strategy; a few years of early market appreciation means a high likelihood for a healthy retirement, while a flat or declining market in the early years could throw a wrench into the calculation.

It is called sequence-of-return risk, and it poses a serious conundrum for advisers putting together a retirement-income plan for client
Regards,
Ted
http://www.investmentnews.com/article/20170425/FREE/170429938?template=printart

Comments

  • VintageFreakVintageFreak
    edited April 2017
    What! Really? OMG !!!

    So we stay invested in the downturn all the way in our retirement accounts. If we didn't then why would there be something called sequence-risk?
  • Old_JoeOld_Joe
    edited April 2017
    Happened to us, 2007/08. Fortunately we didn't need retirement accounts for living expenses, which allowed us to stay and ride it out.
  • Derf
    Old_Joe: I was in the same boat.
    Derf
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