Withdrawl Sequence Risks - Friday May 6

When markets are volatile not only like the last few weeks but the last few years Withdrawl Sequence Risk can have a significant impact on your portfolio. This refers to the actual order of your withdrawls and returns. It doesn't really matter when you are accumulating money on a regular basis because of dollar cost averaging but it does matter when you are withdrawing income especially if you have a negative return sequence in the early years of your retirement. The main point here is to be sure to avoid negative returns in early retirement. this can be acheived by proper portfolio construction and using alternative strategies. Make sure you diversify your portfolio so you are comfortable with the risk level of your overall portfolio.