In today’s episode, host Dave Hall is joined by RRA expert partner Brian Britt to discuss an important topic: sequence of return risk in retirement. As they delve into this subject, they shed light on how this concept has evolved over the years and why it is becoming increasingly important in retirement planning. Dave and Brian draw from their decades of experience in the industry to analyze the impact of market downturns and share strategies to navigate this risk. Plus, they discuss the historical context of retirement planning, highlighting the shifts they have witnessed throughout their careers. So, if you want to gain valuable insights on sequence of return risk and learn how to safeguard your retirement, tune in to this informative episode of RRS.
Top Key Takeaways You Will Learn:
- Sequence of return risk is a relatively new concept in the retirement planning industry. It wasn’t widely discussed or recognized until recent years. However, it has gained significant importance and is now a crucial consideration for retirees.
- The impact of sequence of return risk can be significant. Market downturns, like the ones experienced in 2000 and 2008, can have a devastating effect on retirees’ portfolios, forcing them to alter their retirement plans or even go back to work.
- Prior to the emergence of sequence of return risk, many individuals focused solely on asset management and individual stock investments. However, it is now recognized that diversification and professional asset management are crucial in mitigating the risks associated with sequence of return.
