sequence-of-returns risk
Coverage of sequence-of-returns risk in the Nexus archive.
- You just retired (or are about to). Now what?
Retirees and pre-retirees face challenges from inflation and economic uncertainty, emphasizing the need to adjust spending rates, prioritize safer assets, and optimize Social Security strategies. Morningstar research highlights that early portfolio losses in retirement increase the risk of depleting savings, while strategies like 'catch-up contributions' and the 'Bucket approach' can mitigate these risks.
- You just retired (or are about to). Now what?
Retirees and soon-to-retire individuals face challenges from inflation and economic uncertainty, particularly sequence-of-returns risk where early market downturns threaten long-term portfolio sustainability. Strategies to mitigate this include adjusting spending, prioritizing safer assets for cash flow, maximizing savings through catch-up contributions, and delaying Social Security to secure inflation-protected income.
- You just retired (or are about to). Now what?
Retirees and near-retirees face challenges from inflation and economic uncertainty, emphasizing the need to adjust spending rates, prioritize safer assets for cash flows, and optimize Social Security benefits to mitigate sequence-of-returns risk. Strategies include forgoing inflation adjustments during market downturns, maximizing savings through catch-up contributions, and adjusting portfolio allocations to preserve long-term income.