What is “Sequence of Returns Risk” and Why Should You Care?

Yesterday, I wrote about why financial planning is so important. I included an actual case study of how a robust financial plan can help shape your investment strategy to give you a better chance of achieving your financial goals and preserving your financial independence across a variety of market environments. In that commentary I introduced the concept of “Sequence of Returns Risk.”

Sequence of Returns Risk is absolutely critical to understand especially for folks within 5 years of retirement or who have retired within the last 7-10 years. Continue reading “What is “Sequence of Returns Risk” and Why Should You Care?”