Sequence of Returns Risk: How You Can Manage Its Impact on Your Retirement Portfolio

SORR, or Sequence of Returns Risk, is ultimately a series of events that can happen to your retirement if you’re not prepared. Check out this video to learn the importance of balancing risk versus reward and identifying the proper growth rate that you need to achieve your income goals, maintain your spending desires, and also keep up with inflation.

🏃🏻 Jump right in:
00:00 Introduction to Sequence of Returns Risk
01:23 The Impact of Sequence of Returns Risk on Retirement
03:07 Illustrating Sequence of Returns with Hypothetical Scenarios
04:57 Understanding Retirement Income Needs
05:24 Balancing Risk and Reward in Retirement
06:46 Factors Affecting Risk Tolerance and Capacity
08:37 Tools for Analyzing and Mitigating Risk
09:57 Evaluating Growth Expectations and Market Forecasts
11:26 Stress Testing Retirement Plans
12:53 Strategies for Mitigating Sequence of Returns Risk
15:31 Implementing Flexible Retirement Income Plans
16:36 Diversifying Retirement Assets for Long-Term Stability
18:06 The Importance of Avoiding Emotional Investment Decisions

Link to mentioned Vanguard Model Forecasts: https://corporate.vanguard.com/conten...

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Disclaimer:
This video discusses fixed-income investing and utilizes the 10-year U.S. treasury as a general representative fixed-income investment. Conclusions reached, opinions stated, and downside risks and potential returns presented should not be construed as applying to other types of bonds or fixed-income assets. Other types of fixed-income products carry different levels of risk and return potential and should be evaluated as an element of a diversified portfolio with your specific risk tolerance, investment objectives, and timeline in mind. Nothing in this video is investment advice, an investment recommendation, or an offer to buy or sell any security. Investing involves risk.