Blog - What is Sequencing Risk in Early Retirement - with Practical Examples

Sequencing risk defines that the order of returns being more significant when you are withdrawing rather than accumulating. A market downturn early in retirement can cause a portfolio to run out, even if average long-term returns are the same. Definitions Sequencing risk is the term that covers the order or sequence of returns impacting the success rate of your withdrawals in retirement. Why this…