Understanding Sequence of Returns Risk

            <h3>What is Sequence of Returns Risk?</h3>
            <p>Sequence of returns risk refers to the danger that the timing of withdrawals from a retirement account will coincide with poor market performance. This risk is particularly important during the early years of retirement when portfolio values are at their highest.</p>

            <h4>Why It Matters</h4>
            <ul>
                <li><strong>Early Losses Hurt Most:</strong> Poor returns in the first few years of retirement can permanently impair a portfolio's ability to recover.</li>
                <li><strong>Withdrawal Impact:</strong> Taking distributions during market downturns locks in losses and reduces the portfolio's recovery potential.</li>
                <li><strong>Time Matters:</strong> The same average return over different sequences can produce vastly different outcomes.</li>
            </ul>

            <h4>Mitigation Strategies</h4>
            <p>Our Monte Carlo simulator helps you explore various strategies to manage this risk, including:</p>
            <ul>
                <li>Dynamic withdrawal strategies</li>
                <li>Diversified asset allocation</li>
                <li>Cash buffers and bond ladders</li>
                <li>Flexible spending in retirement</li>
            </ul>