In part 1 of this article, we discussed the importance of your financial decisions during what has been called the Retirement Risk Zone, or the period 5-10 years before retirement through the 5-10 years after your retirement date.
During this period, exposure to sequence of return risk is a serious concern. With this risk, a series of negative returns early in your retirement while you are making withdrawals can have a devastating effect on your portfolio’s ability to last through your retirement.
A popular strategy used for dealing with sequence of return risk, is the 4% rule. … Read More