Sequencing risk: What is it and why should people in the retirement risk zone care?

For those in the Retirement Risk Zone, addressing drawdown risk and other portfolio threats before they are realized is critical to a long successful retirement. We discuss what these drawdowns can mean and how to properly manage these risks. Key takeaways are:

• Market corrections near the beginning of retirement may sap portfolio life by seven years or more.
• Retirees are faced with a number of portfolio threats: longevity, volatility, low rates, and inflation.
• Replacing just 15% of a portfolio's overall assets with buffered equity strategies may help a retiree's savings last well beyond their years.