Sequence of Returns

The sequence of returns (order and timing) can have a big impact on portfolio values.  For those entering retirement and those already taking distributions, these withdrawals can compound, making it more difficult to recover and perhaps impacting a portfolio in such a way that a retiree’s lifestyle can be negatively affected. Other things that can impact portfolios include investment mix, taxes, and fees.

 While institutions and large pensions can continue to hold positions during down markets, individual investors do not have infinite timelines so a large drawdown can have far reaching consequences, potentially causing significant changes to lifestyle and finances.

Focusing on managing drawdown risk to a stated objective may help you stay on track to meet your financial goals.

Call me to schedule a complimentary consultation to analyze your portfolio risk and the potential impact on your retirement goals.

Information is for general use only and not intended as investment, tax or legal advice.  Consult the appropriate professionals for information regarding your specific situation prior to making financial decisions.

Email questions to laura.skinner@lpl.com or call 620-325-3491.