Why It's So Critical to Understand Sequence-of-Returns Risk If You Want Your Nest Egg to Outlast Your Retirement
As an investor, you've probably learned something about how to find companies you believe are poised to make their shareholders money, and you've undoubtedly heard how beneficial it is to continue investing even when the market is shaky. But one term you may not have learned is "sequence-of-returns risk." This refers to the impact that the timing of your withdrawals can have on your portfolio.And understanding it will be critical if you're going to reach your long-term retirement goals.Image Source: Getty Images.Continue reading
As an investor, you've probably learned something about how to find companies you believe are poised to make their shareholders money, and you've undoubtedly heard how beneficial it is to continue investing even when the market is shaky. But one term you may not have learned is "sequence-of-returns risk." This refers to the impact that the timing of your withdrawals can have on your portfolio.
And understanding it will be critical if you're going to reach your long-term retirement goals.
Image Source: Getty Images.
