Sequence of Returns Risk – How It Can Make or Break Your Retirement

Every day, roughly 10,000 American baby boomers reach retirement age. But are they financially ready for retirement?

TAG Advisory Services's Insight

A key concern of sequence risk is predicated on the fear that the economy will collapse at some time during the investor’s investment time horizon and impair their ability to meet their retirement goals. Because the impact of sequence risk is magnified by the economy’s condition and the amount that the investor withdraws each year, it’s critical that advisors are able to appropriately advise on how much a client is able to withdraw each year in dynamic economic environments and still be able to remain on track to meet his/her goals. In this article, the author evaluates portfolio returns under varying withdrawal levels and economic conditions.