How to Reduce Sequence of Return Risk | 2 Essential Strategies for Early Retirement скачать в хорошем качестве

How to Reduce Sequence of Return Risk | 2 Essential Strategies for Early Retirement

As retirement nears, protecting your savings from market volatility is crucial. John, 52, plans to retire at 55 and is concerned about sequence of return risk, a key factor in retirement planning. While his savings are strong, an early market downturn could impact his portfolio. Sequence of return risk occurs when market declines coincide with early withdrawals, reducing the longevity of your portfolio. Even with average long-term returns, early losses paired with withdrawals can be damaging. To mitigate this, we advised John to diversify his equity-heavy portfolio by adding bonds and other assets to balance risk. A sustainable withdrawal strategy is also key; we suggested keeping five years' worth of living expenses in safer assets to avoid selling equities during a downturn. Additionally, Roth conversions could reduce future tax burdens. Beyond finances, John’s plan includes staying active, volunteering, and addressing healthcare needs before Medicare kicks in. Planning ahead helps mitigate risks like sequence of return, allowing for a more secure and fulfilling retirement. ======================= Submit your request to join James On the Ready For Retirement podcast 👉 Apply Here: https://form.jotform.com/240808233107146 On a Retirement Makeover episode 👉 Apply Here: https://form.jotform.com/Conole/retir... Learn the tips & strategies to get the most out of life with your money. Get started today → https://www.rootfinancialpartners.com/ Get access to the retirement software I use in this video and more → https://retirement-planning-academy.m... 🔔 Make sure to subscribe here to be notified for future videos!    / @rootfp   _ _ 👥 Make sure to connect with us on all socials below → https://beacons.ai/rootfinancialpartners ⏱Timestamps:⏱ 0:00 - John’s concerns and plans 3:57 - Sequence of returns risk 5:58 - Looking at numbers 8:28 - Healthcare and other expenses 11:03 - Income in retirement 12:32 - Cash flows 15:29 - Withdrawal rate risk 19:06 - Concentration risk 20:41 - Example 1 24:43 - Example 2 28:22 - No perfect science 29:22 - 5 years of expenses set aside 32:34 - Considering location 36:41 - Prioritize diversification over growth 39:31 - Wrap-up Other videos we think you'll like: About Root:    • Financial advisors with heart.   Worried about retirement? Start here:    • Worried About Retirement..Start With a Bla...   -- Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation. The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal. Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements. Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written agreement with Root Financial.