As you near retirement, this overlooked risk can ‘make or break’ your portfolio, advisor says
As their retirement nears, investors need to be aware of a threat known as the “sequence of returns risk” which could jeopardize their retirement nest egg.
While this risk is often an overlooked and misunderstood problem for retirees, there are ways to minimize its negative impact, experts say.
Also called “sequence risk,” the issue stems from poor investment returns paired with withdrawals, particularly earlier in retirement. The combo can shrink your nest egg over time.
Those early retirement years’ investment returns and withdrawal timing can “make or break the next 30 years,” warned certified financial planner Collin Lyon, wealth strategy advisor at Anderson Financial Strategies in Dayton, Ohio.
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