During your early years of working, you are focused on saving money, accumulating that nest egg for retirement. You are not taking any withdrawals from your TSP; you are adding to it every two weeks. The market goes up and it goes down, and that’s okay because you will not need it for 30 years.

However, as you get closer to retirement and begin to plan on taking withdrawals from your account, you need to think differently and consider a new set of risks. The five years before your retirement, and the first five years of retirement, are critical to the longevity of your retirement income plan.

In planning for retirement, it is important that you begin developing strategies to reduce or eliminate sequence of return risk during that five-year period before you retire.

What Is Sequence Of Return Risk?

Sequence of returns risk refers to the risk of experiencing a down market, combined with rising inflation, at the beginning of the distribution period of your retirement. When this happens, it can have a major impact on how long your money will last in retirement.

Take Control Of Your Future.

A Federal Retirement Consultant℠ (FRC) can help you develop a strategy that mitigates sequence of returns risk and provides a stable source of income over a long retirement.

To learn more and review case studies of sequence of return risk in action, download the latest issue of our free magazine.