Sequence of Return Risk: How Retirees Can Protect Themselves

Five stacks of coins getting subsequently shorter with a jagged red down arrow above them.

Retirement planning is a multifaceted endeavor that encompasses everything from asset allocation to health care costs.

One crucial — yet often overlooked — aspect is sequence of return risk. This risk refers to the danger of experiencing negative investment returns early in retirement, which can significantly deplete a retiree’s portfolio and potentially derail their long-term financial security.