Sequence of Returns Threat – Why Early Retirement Losses Hit Hardest
A market downturn early in retirement, if you’re actively withdrawing out of your portfolio, does way more harm than the identical downturn mid-career. Selling shares at depressed costs to fund residing bills completely reduces the portfolio’s means to get better. Keep one to 2 years of bills in money or short-term bonds so that you’re by no means pressured to promote in a down market.
