Not only do you need to watch the place that holds all the money, you need to watch the pipeline that feeds the money there.
Tag "Sequence of Return"
Right now, those nearing or in retirement must confront the twin troubles of inflation and falling markets. One of these events, however, is worse than the other.
The problem with Sequence of Return Risk is that there’s no way of knowing if you’ll experience it. It’s a roll of the dice. The best way to avoid this risk is to prepare as if it were going to happen.
You can’t do anything about it if you don’t know what the “it” is you need to do something about. It is therefore important for plan sponsors to devote resources that increase employee awareness.
