The Retirement Risk Most People Never Hear About

Added: 2026-05-25

[00:00:00]This concept is called sequence of returns risk. And I'll be honest with you.

[00:00:05]Most people have never heard of it. But once you understand it, you can't unhear it.

[00:00:12]Here's the simple version.

[00:00:14]It's not just about the average return your portfolio earns over time. It's about when the bad years happen.

[00:00:23]For example, there were two people, same retirement savings, same withdrawal amount each year, same average return over 20 years.

[00:00:33]The only difference?

[00:00:35]The order the returns arrived in.

[00:00:38]Person A had great returns in the early years of retirement, markets cooperate, their portfolio grows even as they take withdrawals. 20 years later, they still have money left over.