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