Very good illustration. It shows we shouldn't do active withdrawal on assets at SPY risk level. We should always have something more stable for withdraw for next few years and when the market is good, transfer SPY/QQQ to the conservative assets.
Great explanation of withdrawal risks. Delaying retirement if possible during the bad market. Or have at least one year of expenses in cash or money market funds.
terrific explanation with real world examples from the S&P 500, I think this is the best one I've seen on this particular topic! After watching this video I think I'll stack some up in money market to hedge against this risk, and even though it won't yield much in return it will give peace of mind knowing it's available those first several years into retirement.
Could you explain the negative impact of sequence of returns risk during the accumulation phase of a portfolio, investing in index funds with 60:40 equity:debt allocation for a 25 year investment duration for retirement and how to deal with it
The notion of sequence of return risk as discussed in this video only applies during the decumulation stage or retirement...when you're actively and routinely taking money out of your portfolio
@@RetirementPlanningEducation Thanks for your response ... Let me rephrase my doubt ... lets say i have 25 years for accumulation phase, how do I manage my asset allocation to handle a big crash on the 24th year .... do i stick with a fixed allocation throughout 25 years with rebalancing or do i reduce equity in a stepwise manner as the years reduce ... is there any strategy for this situation
Very good illustration. It shows we shouldn't do active withdrawal on assets at SPY risk level. We should always have something more stable for withdraw for next few years and when the market is good, transfer SPY/QQQ to the conservative assets.
Great explanation of withdrawal risks. Delaying retirement if possible during the bad market. Or have at least one year of expenses in cash or money market funds.
The best video I’ve seen on the subject.
Thank you!
Thanks for the video. It helped me understand that sequence of return better than I did.
Great explanation Andy! Kitces has some great approaches on this subject I've found extremely helpful as well. Thanks again. Steve
terrific explanation with real world examples from the S&P 500, I think this is the best one I've seen on this particular topic! After watching this video I think I'll stack some up in money market to hedge against this risk, and even though it won't yield much in return it will give peace of mind knowing it's available those first several years into retirement.
Thank you Jesse! I’m glad you found it helpful.
Thanks Andy, good explanation.
Great explaination!
thank you John!
Would a fixed indexed annuity be a good way for someone over 65 years old to allocate a portion of their nest egg to protect their principle ?
Could you explain the negative impact of sequence of returns risk during the accumulation phase of a portfolio, investing in index funds with 60:40 equity:debt allocation for a 25 year investment duration for retirement and how to deal with it
The notion of sequence of return risk as discussed in this video only applies during the decumulation stage or retirement...when you're actively and routinely taking money out of your portfolio
@@RetirementPlanningEducation Thanks for your response ... Let me rephrase my doubt ... lets say i have 25 years for accumulation phase, how do I manage my asset allocation to handle a big crash on the 24th year .... do i stick with a fixed allocation throughout 25 years with rebalancing or do i reduce equity in a stepwise manner as the years reduce ... is there any strategy for this situation