Risk involved in making withdrawals from an investment during or immediately after periods of poor performance. A retiree who begins withdrawing funds from a retirement account just after a market downturn may seriously deplete the value of the account. To reduce this risk, the retiree may have to make smaller withdrawals than planned during the early stages of retirement.
Related information about sequence risk:
- Sequence Risk Definition | Investopedia
The risk of receiving lower or negative returns early in a period when withdrawals are made from the underlying investments. The order or the sequence of ...
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Definition of sequence risk: Risk involved in making withdrawals from an investment during or immediately after periods of poor performance. A retiree who ...
- Retired Investors Face Sequence Risk | Millionaire Corner
Jul 13, 2012 ... Retired investors selling in a bear market face a threat known as sequence risk. Certain investment strategies can help protect retirement ...
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