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Morningstar on SOR Risks Early in Retirement

Morningstar’s @JPtak reports that the S.O.R risks are quite high in the first 5 years of 30-yr retirement period. So, one should use more conservative allocations & withdrawals in those first 5 years. Also, the portfolio balances must be monitored closely during those 5 years & corrective actions should be taken if the portfolio drops precipitously.
https://www.morningstar.com/retirement/how-avoid-outliving-your-retirement-savings-its-all-sequence

Comments

  • S.O.R.- Sequence of Return

  • There is a very recent YT video discussing SOR, which includes a discussion of alternative strategies to mitigate it..




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