Beware of Sequence of Returns Risk
You have done everything right. You planned ahead and triple-checked your plan before you called it quits. But there is a risk that many retirees don’t consider. Depending on the timing of your retirement, your financial security could be at risk due to plain old luck (or lack thereof).
How your portfolio performs in the critical first few years is of utmost importance. You can Google countless examples online. Here’s one: https://blackrock.com/pt/literature/investor-education/sequence-of-retur…
Isn’t that a little scary? The difference between a financially secure retirement and running out of money is…dumb luck? Seems unfair. Well, there are strategies that can help you lessen that risk. There is no one-size-fits-all solution, but it pays to be aware of your options. If you’d like to “stress test” your portfolio, simply email me at rbarber@vpfgroup.com for a no cost, no obligation simulation of how your portfolio might behave.
(link to a simple Monte Carlo simulation tool…gives them the range of outcomes within 2 standard deviations, which provides 95% certainty)
This might give you more confidence in your plan or confidence in your investments.
The projections or other information generated by Monte Carlo Analysis tools regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.
Contact Ryan today for a Consultation. Call 989-928-3332
