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Why is it essential to understand sequence of return risk when planning retirement withdrawals, particularly in the early years?



Sequence of return risk refers to the danger of experiencing negative investment returns early in retirement, which can severely deplete a retirement portfolio's longevity. In the early years of retirement, withdrawals are generally higher as a percentage of the portfolio, and negative returns during this period force retirees to sell off a larger number of share....

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Redundant Elements