Secure Your Retirement: 5 Essential Bucket Strategies to Combat Sequence-of-Returns Risk
The transition into retirement marks a fundamental shift in financial strategy. Accumulation gives way to decumulation, where market volatility takes on heightened significance. Retirees drawing income from portfolios face unique risks—downturns can have irreversible consequences when time horizons shrink.
Sequence-of-returns risk emerges as a critical concern. Unlike accumulation phases, recovery periods are compressed when living expenses depend on investment performance. This reality demands structured approaches to mitigate drawdown impacts during vulnerable early retirement years.