How to Retire in a Bear Market

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.

Read the full article here

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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