Retirement Planning: Sequence of Returns Risk (2021)
Timing is everything. Markets have gone up and down for as long as we can remember.
And when you are saving for retirement, market corrections, while at times worrisome, may not be as consequential.
Why?
Because you have time on your side for the markets to recover before you will need to rely on your nest egg.
However, when you are taking income from those retirement accounts, market corrections can have a significant impact on the long-term ability of those same assets to generate income for as long as you live.
And if those market corrections take place early in retirement, the risk of outliving your savings can be magnified.
We call this risk sequence of returns risk or sequence risk.
Learn More: https://www.annuityexpertadvice.com/sequence-of-returns-risk/
And when you are saving for retirement, market corrections, while at times worrisome, may not be as consequential.
Why?
Because you have time on your side for the markets to recover before you will need to rely on your nest egg.
However, when you are taking income from those retirement accounts, market corrections can have a significant impact on the long-term ability of those same assets to generate income for as long as you live.
And if those market corrections take place early in retirement, the risk of outliving your savings can be magnified.
We call this risk sequence of returns risk or sequence risk.
Learn More: https://www.annuityexpertadvice.com/sequence-of-returns-risk/
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