The Sequence of Returns During Retirement

For most Americans, accumulating enough funds and resources for retirement are struggles in themselves. But an emerging—and dangerous—trend among baby boomers is occurring during the first years of retirement, where monthly withdrawal rates are too high.

Additional problems can be created as assets are being converting into income and unintentional tax consequences reduce the cash flow available for monthly retirement expenses. But perhaps the most costly mistake and little-known fact in retirement is the negative impact of sequence of returns.