A poor return sequence early in retirement is often portrayed as the worst of risks: a dangerous situation you can’t identify until it’s too late and over which you have no control. Such a sequence-of-returns is just what befell Year 2000 retirees, producing a ten-year financial headwind. This analysis shows that by following the evidence-based research developed since then, retirees would likely enjoy much smoother sailing should such an economic storm again develop.

Reprinted with permission by the Financial Planning Association, Journal of Financial Planning. For more information on the Financial Planning Association, please visit www.fpanet.org or call 1.800.322.4237.