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Sequence of Returns Risk: Same $2 Million, One Runs Out at 82
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Two women retire at 62 with the same $2 million, the same index funds, the same 7% average return, and the same $80,000 a year. One dies at 92 with more than she started with. The other runs out of money at 82. The only difference is the year they retired.
That's sequence of returns risk, and if you're 5 to 15 years from retiring, it's one of the biggest risks to your retirement date.
In this episode:
Why the first 5 years of retirement matter more than the next 25
How a bucket strategy, a bond tent, and a cash reserve can protect you
Why the 4% rule wasn't built to do what…
The skinny
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