The Christian Retirement Show

Ep. 29 Hidden Retirement Killers! Sequence of Returns Risk.


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And welcome to this week’s episode of the Christian Retirement Show. Today we are starting our series on The hidden Retirement Killers lurking just under the surface for people who are retired or are preparing for retirement and how to beat them! This means we are going to be spending the next few week’s talking about 1 of 4 different retirement killers, what they are, why they are important and what you can do to combat them. To begin we are going to be talking about one of the biggest retirement killers out there and a risk that not many people know about!

 

First Hidden Retirement Killer- Sequence of Returns Risk

 

Sequence of return risk is the risk that you might retire right when the market takes a significant drop, leaving you to start taking income from your retirement savings when your account is significantly lower than its highest value.

 

To combat this retirement risk there are two great retirement strategies you can employ:

 

  1. Start lowering the risk you are taking in your retirement investments as your near retirement and just after you retire.
  • Keep 6 months to 2 years’ worth of living expenses in cash in your retirement savings leaving the rest invested. What this allows you to do is to weather any bear markets or short-term downturns in the market without having to sell investments at a low price in order to fund your retirement income needs.
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    If you are looking for a Christian Financial Planner, you are in the right place. Visit Christianretirementplanner.com or email me at [email protected] to start our no cost, no obligation free retirement assessment which allows you to gauge our firm and if we might be a great fit to help you in your retirement planning!

     

    Resources in Show:

    Christian Retirement Planner Website: https://www.christianretirementplanner.com/

    Free Retirement Assessment: https://www.christianretirementplanner.com/your-free-retirement-assessment

    Michael Kitces Sequence of Return Risks Article: https://www.kitces.com/blog/understanding-sequence-of-return-risk-safe-withdrawal-rates-bear-market-crashes-and-bad-decades/

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    The Christian Retirement ShowBy Eric Schrum