Defeating the Double Whammy: Strategies for Sequence Risk

Trevor Lawson revisits one of the most critical technical threats to a stable retirement: sequence of returns risk. By examining the work of retirement specialist Dr. Wade Pfau, the episode breaks down how the timing of market downturns—specifically in the years immediately surrounding one's retirement date—can have a more profound impact on portfolio longevity than average long-term returns. Lawson outlines four specific techniques to combat this risk: spending conservatively through tools like bond ladders, adopting flexible spending habits, reducing overall portfolio volatility via "bucket" strategies, and utilizing "buffer assets" like cash, home equity, or life insurance to avoid selling investments at a loss during market lows.References: 4 Ways To Beat Sequence of Returns RiskSecurities and investment advisory services offered through Osaic Wealth, Inc. member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth. Branch phone: 919-546-0400.