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 LongTerm 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 fixedincome investing and utilizes the 10year U.S. treasury as a general representative fixedincome investment. Conclusions reached, opinions stated, and downside risks and potential returns presented should not be construed as applying to other types of bonds or fixedincome assets. Other types of fixedincome 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.
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