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Welcome to this session of grand rounds, a collection of posts I have discovered in the blogosphere and have found of interest and hope you do too.
The most dangerous period of a retiree financially is at the very beginning of retirement.
Depending on how the market behaves during this time period can drastically effect how much money you will have in the later years.
The dreaded sequence of return risk has been touched upon in this blog, most notably with a guest post by Gasem.
Because this topic is vital to how golden our golden years will or will not be, I dedicated this edition of ground rounds to posts dealing with this subject from around the blogosphere.
First off is an offering by The Loonie Doctor who offers a detailed analysis of various portfolios and how they behave with under a bad SORR.
Check out his conclusions in, “Asset Allocation Strategies To Attenuate Sequence of Returns Risk.”
Changing your asset allocation composition certainly is one method of trying to minimize risk from SORR.
Fortunately there are other methods that can be used in conjunction with proper asset allocation to help you navigate through the early years of retirement unscathed.
Retire By 40 gives several tools you have at your disposal in, “How To Eliminate Sequence Of Returns Risk.”
One potential way of eliminating SORR altogether is the ability to survive during the period without having to sell depressed assets and “lock in the losses.”
They say cash is king and it may indeed help you preserve your kingdom.
The Loonie Doctor double dips on the SORR topic in, “SORR (Sequencing Risk) Reduction Using Cash Flow Strategies.”
Unfortunately some of us are going to go into retirement without a multi-million dollar nest egg.
Be it because of unforeseen events like a divorce later in life or some medical mishap our financial reserves may not be as high as we would like them when we finally have to retire.
This can make SORR even more of an issue as you may be barely scraping by even in the best of times.
ESI does offer some hope for these individuals in, “How to Invest for Retirement with Limited Assets and Avoid Sequence of Returns Risk.”
And to finally drive home the point of the importance of planning for SORR, FI Physician provides his take on the various strategies available to make sure you can survive poor returns early on in retirement in, “How To Mitigate Sequence Risk.”
Hope you enjoyed the reading material.
Have a great rest of the week.
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