James explores the concept of sequence of return risk in retirement planning. Most people are unaware of how risky this is, as it doesn’t become an issue until you begin living off your portfolio.
Responding to a listener’s inquiry about early retirement, James dives into the potential impact of market timing on retirement outcomes.
Learn three actionable strategies:
- Ensure a reasonable initial withdrawal rate.
- Implement a suitable withdrawal strategy.
- Own a diversified mix of assets.
Questions Answered:
How does sequence of return risk impact retirement outcomes?
How can early retirees protect against sequence of return risk?
Timestamps:
0:00 - Ben’s question
3:19 - Sequence of returns matters
6:48 - 3 projections to consider
11:49 - The 4% rule
16:05 - Considerations for early retirees
18:57 - 3 protective takeaways
22:15 - Summary
Create Your Custom Strategy ⬇️
Popular Podcasts
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
The Nikki Glaser Podcast
Every week comedian and infamous roaster Nikki Glaser provides a fun, fast-paced, and brutally honest look into current pop-culture and her own personal life.