[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-390487-105":59,"doc-detail-390487-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","sequence-of-returns-risk-what-to-know-risk-planning-for-retirees","SEQUENCE-OF-RETURNS RISK - WHAT TO KNOW - Risk Planning for Retirees","","Sequence-of-returns risk affects retirees when withdrawals begin during a market downturn, forcing sales at losses and accelerating portfolio depletion. The article explains how retirement income draws from accounts invested in stocks, bonds, and funds, and contrasts two retirees with identical averages but different return timing. It recommends planning years in advance, adjusting asset allocation, and using a bucket strategy with short-, medium-, and long-term segments. Advisor perspectives outline diversification and withdrawal discipline to balance stability and growth.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":35,"@type":76,"position":81},"https://docshare.wps.com/document/healthcare/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/sequence-of-returns-risk-what-to-know-risk-planning-for-retirees/390487/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/sequence-of-returns-risk-what-to-know-risk-planning-for-retirees/390487.png","ImageObject",300,407,{"name":92,"@type":93},"Margaret","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-29","2026-09-25",true,{"@type":102,"interactionType":103,"userInteractionCount":34},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What is sequence-of-returns risk and why does it matter for retirees?","Question",{"text":112,"@type":113},"Sequence-of-returns risk happens when withdrawals begin during a market downturn, which can force retirees to sell investments at a loss. That can shrink savings faster than expected and threaten retirement longevity.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"When should retirees start planning for sequence-of-returns risk?",{"text":117,"@type":113},"Planning should begin as soon as possible, with guidance in the article suggesting addressing it at least five years before retirement, and realistically closer to ten years ahead.",{"name":119,"@type":110,"acceptedAnswer":120},"How does the bucket strategy help reduce sequence-of-returns risk?",{"text":121,"@type":113},"The bucket strategy divides retirement assets into short-, medium-, and long-term categories. It keeps near-cash funds for near-term spending, uses more moderate growth in the medium bucket, and leaves longer-horizon growth assets for later, reducing the need to sell at losses during downturns.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},390487,1790693973,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":34,"category_name":35,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":34,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":8,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":81,"preview_page_count":4},137451207643,"https://ap-avatar.wpscdn.com/davatar_3d24733baf745e90a7e4bdd5f77d97b2","SEQUENCE-OF-RETURNS RISK: WHAT TO KNOW  \nBy: Sean Canonica-May 3, 2025  \nPicture this: after years of hard work and diligent saving, you’re finally ready to retire. But just as you begin withdrawing income from your portfolio, the market takes a sudden downturn. This unfortunate timing, known as sequence-of-returns risk, can have a significant impact on your financial future.  \nIn this article, we’ll break down how sequence-of-returns risk works and why it’s a critical consideration for retirees. You’ll learn when to begin planning for it and how the bucket strategy can help prevent it. We’ll also share perspectives from financial advisors on how to balance stability and growth within your portfolio as you near retirement.  \nHow Sequence-of-Returns-Risk Works  \nOnce you retire, it’s time to start drawing income from your accounts, such as a 401(k) or Roth IRA. These accounts are typically invested in a mix of assets like stocks, bonds, and mutual funds, rather than held entirely in cash. Sequence-of-returns risk occurs when you begin making withdrawals during a market downturn, forcing you to sell investments at a loss and potentially shrinking your savings faster than you expected.  \n“Sequence-of-returns risk is one of the largest, yet unmanaged risks I come across with the individuals,”says John Jones, investment advisor representative at Heritage Financial. He notes that during the accumulation stage of your life, “you can make adjustmentseven after poor performance and unforeseen circumstances and still come out fine.” However, once you retire, you’re prone to “running out of money because of sequence-of-returns risks” due to locking in losses when you sell, he adds.  \nTo imagine the impact, consider two different retirees, A and B, who each retire with $2 million and plan to draw down $80,000 annually. Although they experience the same average annual return over a 30-year retirement period, the sequence of those returns differs: Retiree A enjoys strong early gains, while Retiree B faces a downturn in the first few years. Because Retiree B must sell investments at lower prices to fund withdrawals, their portfolio depletes more quickly overall, jeopardizing the longevity of their savings.  \nWhen to Start Planning for It  \nBecause sequence-of-returns risk is a serious threat to your retirement savings, it’s important to begin planning for it as soon as possible. This way, if the market does take a turn for the worse, you’ll be in a position to weather it and avoid locking in losses.  \nWhen you’re younger and have a longer time horizon until retirement, it makes sense for your portfolio to comprise long-term, growth assets, such as equities.  \nHowever, as you near your post-working days, this becomes risky. For this reason, it typically makes sense to shift your investments to account for market volatility.  \nHow soon should you plan ahead before you retire?“Sequence-of-returns risk should be addressed at least five years before retirement, but realistically it is best addressed 10 years before retirement,” says Keith Heritage, financial advisor and managing partner at Heritage Financial.  \nBy planning sooner, you give yourself ample time to address market volatility risks before they happen. If you wait until you retire, you may not have time to react if the value of assets begins to fluctuate. This, unfortunately, would leave you in a precarious situation if you need to sell assets to fund your lifestyle.  \nUsing a Bucket Strategy to Protect Your Retirement Income  \nProtecting yourself against sequence-of-returns risk requires thoughtful portfolio management. One of the most common ways to guard against market downturns is by using the bucket strategy. This method divides your retirement savings into three time-based categories:  \n• Short-term bucket that holds cash and near-liquid investments, such as a money market fund.  \n• Medium bucket that prioritizes modest growth via securities like bonds or certificates of deposit ","cbCainRWuijuYhHU","https://ap.wps.com/l/cbCainRWuijuYhHU","pdf",187224,"English","# How Sequence-of-Returns-Risk Works\n# When to Start Planning for It\n# Using a Bucket Strategy to Protect Your Retirement Income\n# Mistakes to Avoid\n# How a Financial Advisor Can Help","[{\"question\":\"What is sequence-of-returns risk and why does it matter for retirees?\",\"answer\":\"Sequence-of-returns risk happens when withdrawals begin during a market downturn, which can force retirees to sell investments at a loss. That can shrink savings faster than expected and threaten retirement longevity.\"},{\"question\":\"When should retirees start planning for sequence-of-returns risk?\",\"answer\":\"Planning should begin as soon as possible, with guidance in the article suggesting addressing it at least five years before retirement, and realistically closer to ten years ahead.\"},{\"question\":\"How does the bucket strategy help reduce sequence-of-returns risk?\",\"answer\":\"The bucket strategy divides retirement assets into short-, medium-, and long-term categories. It keeps near-cash funds for near-term spending, uses more moderate growth in the medium bucket, and leaves longer-horizon growth assets for later, reducing the need to sell at losses during downturns.\"}]","SEQUENCE-OF-RETURNS RISK - WHAT TO KNOW - Risk Planning for Retirees | PDF",1790335072]