
The Sequence of Return Risk
You and your neighbor could both average the same annual return in retirement—but you could run out of money a full decade earlier. How? A little-known but critical concept called sequence of return risk. It's not just how much your portfolio earns, but when those gains and losses happen. Retirees who face early market downturns while making withdrawals may see their portfolio erode faster than expected—even if the market recovers later. In this brief breakdown, I walk through a real-world example showing how two retirees with identical average returns can have drastically different outcomes. If you’re within five years of retirement and have at least $1 million saved, now is the time to stress test your retirement strategy. Learn how income withdrawal planning, dynamic bucket strategies, and tax location tactics can help safeguard your retirement longevity.