Understanding Sequence of Return Risk

Understanding the sequence of return risk in your portfolio is one of the most important things we can learn about while planning for retirement and yet there is not enough conversation out there on this topic. We need to understanding this risk even more now with a disappointing job report and the current market volatility.

So, what is sequence risk then? It’s the risk that comes with the order in which your investment returns occur. In other words, if the market dips early in your retirement, is the longevity of your portfolio still secure? On today’s episode, we’ll discuss this little-known topic and how the Redefining Wealth Process® protects retirees throughout all of their retirement.

Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/

Rate, Review and Subscribe to the Podcast:

https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188

How to Connect:

redefiningwealth.info

lswealthmanagement.com

Schedule a Review: https://redefiningwealth.info/schedule/

Timestamps (show notes):

3:58 – What is sequence risk?

6:59 – Comparing Portfolio A and Portfolio B

11:13 – Going from 4% to 2.6% withdrawal

16:12 – Spending habits are changing

19:14 – How is the market adjusting?

23:31 – Preparing properly with your plan