via Wall Street Journal
For the first time in about seven years, investors approaching retirement may be facing one of their biggest financial fears: retiring into a bear market.
Before 2015, the stock market rose for six years in a row, despite many hiccups. Even last year, market averages set highs before sliding, and stocks are still in the red so far in 2016.
Now, savers have to think about “sequence of returns” risk: If they are forced to make withdrawals early in retirement from a portfolio that is declining precipitously, there will be fewer shares left over to benefit when the market eventually goes back up. That, in turn, raises the risk they could outlive their assets.
Obviously, the easiest thing to do is keep working, if you’re willing and able to do it. By delaying retirement, you can avoid withdrawing money when your portfolio is down and continue adding funds to your nest egg.
