Two retirees can start retirement with the same amount saved, the same investments, and the same withdrawal plan, yet end up with very different outcomes.
That is because in retirement, the order of investment returns matters.
In this video, I walk through a hypothetical example of two couples who both retire at 65 with the same amount saved. One couple remains on track. The other runs out of money much earlier than expected.
The difference is not that one couple had better investments. It is that one had a clearer plan for how to respond when the market dropped early in retirement.
In this video, I discuss:
• Why average returns can be misleading in retirement
• How early market losses can create long-term damage
• Why having cash or bonds is not the same as having a plan
• How a guardrails approach can help guide spending decisions
• Why retirees need to know when to reduce spending and when it may be safe to spend more again
The goal is not to avoid every market decline. That is not realistic.
The goal is to have a system in place before the decline happens, so you are not forced to make major retirement decisions based on fear, guesswork, or emotion.
If you are approaching retirement or already retired, this video will help you think through one of the most important risks retirees face.