Recent market fluctuations have awaken many retirees to the unfortunate fact that negative market returns early in retirement can be a serious threat to a retiree's financial stability. This risk, called sequence of return, is the likelihood of experience poor investment returns in the initial years of retirement. Poor market returns early can lead to running out of money in the later years.
The success of your retirement plan can hinge on whether you are one of the lucky ones who avoids a downturn in those first years as you start withdrawing from your investments.
If you are one of those 50+ year-olds and thinking of retirement, now is the perfect time to address this topic head-on. Understanding this risk and employing strategies to mitigate it is the best way to protect your hard earned savings.
Watch this video to learn more about this key concept and how this may impact you.There are many ways to add financial safeguards to your retirement plan. We are experts in the areas of strategic financial planning for those nearing retirement. We invite you to schedule a visit to review your current position and to explore practical ways to moderate this risk and enhance your financial future.