Two retirees can earn the same average return and end up in very different places, simply because of when the down years arrive. In this video, Tim talks about protecting what you’ve built in the years just before and after retirement — the window when down markets do the most damage, known as sequence-of-returns risk.
It’s educational only — a framework for understanding one of the most overlooked retirement risks.
Transcript
A full transcript will be published here once this video is released. Prefer to read? Explore the related guides below for the same material in written form.
Frequently Asked
What is sequence-of-returns risk?
It’s the risk that poor investment returns early in retirement — while you’re also withdrawing money — permanently reduce how long your savings last, even if average returns later recover.
How can I manage sequence-of-returns risk?
Common approaches include holding a cash or stable reserve to avoid selling in down markets, adjusting withdrawals, and covering essential expenses with more dependable income sources. The right mix depends on your plan.
