The stock market posted above-average annual returns over the past 13 years.  Other factors indicate there may be a higher level of risk in the stock market.  In addition, higher inflation, increasing interest rates, and rising geopolitical tensions add to the possibilities of a significant correction or bear market.  Could this mean we are entering the retirement danger zone? 

Studies have shown, a negative year—or two—early in your retirement could put a lot of stress on your nest egg.  The financial industry calls this sequence of returns risk.   In today’s episode, we discuss…

• Intro


• Something interesting – the potential cost of emotional investment decisions.


• Defining Sequence of Returns Risk


• Why should we worry about this now?


• It’s not the little drops you should worry about.


• Investment Math


• A real-world example of how Sequence of Returns can impact you.


• What are some things you can do to manage this risk?


• Future returns are hard to predict.


• Three things you can do right now.

If you would like to read our recent comments on the investment markets for early 2022, please visit: https://cfswv.com/cfsblog/a-rough-start

To learn more about this topic and to see the graphics in this video, please visit:  https://cfswv.com/cfsblog/the-retirement-danger-zone

#RetirementPlanning #BearMarket #Retirement

Appearing in this video

Todd Kimpel, CLU®

Tyler Szafran, CRPC®

Neal Watson, CFP®

Learn more about our firm: https://cfswv.com

Contact a financial advisor near you: https://cfswv.com/contact