It’s called sequence-of-return risk, and the danger is very real. When you make regular withdrawals from investments while market returns are down, your portfolio shrinks faster because the investments are worth less. If that happens early in retirement, it’s more difficult to rebuild your assets and get back on track – you could even deplete your portfolio before the good returns show up.

But there are ways to protect yourself from negative returns in the early years of your retirement, including reducing risk in your portfolio and modifying spending in down market years.

For more information on how to achieve a successful retirement, call us today.