Those about to start withdrawing what will be a lifetime of income from their investments are subject to one of the greatest risks in retirement income planning. The risk is called sequence of returns risk, or SoRR.
Imagine two individuals who both retire on the same day, withdraw the same annual amount, and earn the exact same average rate of return until they die.
I keep trying to write a post about sequence of returns risk (SoRR) and why I believe dynamic withdrawal strategies are the optimal solution for retirees. But they get too technical too quickly, and the last thing I want to do is write something that reads like an Excel spreadsheet. I hope to get something out later this week or early next week.
To get over this writer’s block and stick to the plan of posting once a week, here’s something simpler. I hate that I’m doing a ‘list’ blog post, but here are the most common financial pitfalls I see Canadian investors make.
