What is sequence of return risk? And should you be worried about it?

Edelman Financial Engines wealth planner Isabel Barrow breaks down the meaning behind sequence of return risk for Jean and Soledad and explains what role it plays for retirees when it comes to withdrawal strategies.

 

Investing strategies, such as asset allocation, diversification, or rebalancing do not assure or guarantee better performance and cannot eliminate the risk of investment losses. There are no guarantees that a portfolio employing these or any other strategy will outperform a portfolio that does not engage in such strategies. Funds and ETFs are subject to risk, including loss of principal. All investments have inherent risks. There can be no assurance that the investment strategy proposed will obtain its goal. Past performance does not guarantee future results.

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