In this edition, Joe and Ron discuss how to protect clients from a down market in the crucial early withdrawal years.
Joe's response included:
"There are a variety of ways to manage sequence of returns risk in retirement, and they all start with a reasonable expectation of whether the client is actually at risk or not — and if so, to what extent."
And Ron's response included:
"To manage sequence risk, one has three levers: spending, portfolio risk, and its cousin: portfolio expected returns. Assuming spending is fixed, the management comes down to a delicate (and perhaps fragile) balancing act between portfolio risk and return."
See the full response from both Joe and Ron in ThinkAdvisor.