Hi Jan,
As exciting as retirement can be, the early years carry a unique kind of financial pressure. This is the time when your portfolio is still large, your income needs are just beginning, and market volatility can have the most lasting impact. Researchers call this window the “fragile decade” (aka the five years before and after you retire) and it can shape your entire retirement outcome.
This week’s article takes a closer look at why this period is so important and explores strategies that can help you manage sequence of returns risk. Whether it’s building a buffer, adjusting your spending, or simply rethinking how you draw from your accounts, the right plan can help you stay on track even in uncertain markets.
For those looking to build more structure into their retirement strategy, we’re also highlighting a resource from McLean that walks through the different tools available to help manage income and risk over time. It ties in well with this week’s theme and offers a helpful perspective on how to bring all the moving pieces together.
| | | | The Fragile Decade: Why the First Years of Retirement Matter Most It is easy to get caught up thinking about the benefits of retirement, like no more morning commutes, more time with loved ones, travel, hobbies, and freedom. But from a financial perspective, the first few years of retirement are some of the most critical.
By Retirement Researcher | | | | Understanding the Tools in Your Retirement Income Toolbox You should be familiar with all the tools in your retirement income toolbox. Understanding how each of these resources works, including where its strengths and limits lie, helps you assemble a flexible plan that can adapt to market fluctuations, inflation, and the possibility of a longer life.
By Wade Pfau, Ph.D, CFA, RICP
| | | | Buffer Assets, Bad Timing and Better Plans
In this week’s Q&A episode, Wade and Alex tackle your questions about sequence of returns risk- including how it shows up in longer retirements, how pensions change the equation, and why the early years matter most.
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