Retirement Planning: Sequence of Returns Risk (2021)

Timing is everything. Markets have gone up and down for as long as we can remember. <br /><br />And when you are saving for retirement, market corrections, while at times worrisome, may not be as consequential.<br /><br />Why? <br /><br />Because you have time on your side for the markets to recover before you will need to rely on your nest egg. <br /><br />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. <br /><br />And if those market corrections take place early in retirement, the risk of outliving your savings can be magnified. <br /><br />We call this risk sequence of returns risk or sequence risk.<br /><br />Learn More: https://www.annuityexpertadvice.com/sequence-of-returns-risk/