Key Years for Your Retirement

The five years before and after your retirement may be the most important. 

One of the key factors is Sequence of Returns Risk.

A severe or prolonged market downturn during this period may shorten the longevity of your portfolio and have a negative effect on your income. 

This is why we recommend you be conservative during this period in the allocation of equities to fixed income. 

When you are working and contributing to your retirement plan, if there is a market downturn, you will be dollar cost averaging into the market. 

However when you are near to or already retired, you no longer can dollar cost average into a down market so it is prudent to be more conservative than you were during your working years.