You’ve saved diligently. You’ve got the nest egg. But if the market decides to throw a tantrum in your first few years of retirement, your plan could go off the rails—even if your long-term average returns look fine.
What’s the Sequence of Returns Risk?
It’s not just how much you earn over time—it’s when you earn it. Early losses in retirement hurt more because you’re withdrawing at the same time your portfolio is shrinking.The Math of Bad Timing
Imagine two retirees with identical portfolios and identical average returns—but one experiences a bear market in year one. Over a 30-year retirement, the unlucky one could run out of money a decade earlier.How to Defend Against It
Maintain a minimum of 2 years of cash or very short-term bonds for spending needs.
Be flexible with withdrawals during down years.
Diversify beyond just the S&P 500.
Local Connection
Here in St. Louis, we’re no strangers to unpredictable weather. Retirement markets can be just as volatile—sometimes sunny, sometimes tornadic. Preparation is the umbrella and the storm shelter.
Sequence of returns risk is sneaky, but you can plan for it—without giving up growth.
If you’re within 5 years of retirement, let’s stress-test your plan now—so the market’s mood swings don’t dictate your golden years.
The content is developed from sources believed to provide accurate information. The information in this material is for educational purposes only and is not intended as tax, investment, or legal advice. It may not be used to avoid any federal tax penalties. Please consult legal, investment, or tax professionals for specific information regarding your situation. Mayfair Financial and FMG Suite developed and produced this material to provide information on a topic of interest. FMG is not affiliated with the named state-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.