Sequence-of-Returns Risk: What If You Retire at the Wrong Time?
Have you thought about what might happen if the stock market dropped precipitously just as you began your retirement? What if your portfolio took a 10-, 20-, or 30-percent cut or more just when you needed the funds the most? This is what’s known as “Sequence of Returns” risk. And can be one of the biggest challenges a recent retiree can face.