On this episode of The Resilient Advisor Podcast, Dr. Wade Pfau and Jay Coulter discuss managing sequence of returns risk in retirement planning. Last spring Dr. Pfau had an article published on Forbes.com titled ”4 Approaches To Managing Sequence of Returns Risk In Retirement.
” It is a very popular post on the site. We examine each approach from the financial advisor's perspective.
1. Spend Conservatively
-> Is the 4% number correct in this low interest rate environment?
2. Maintain Flexible Spending
3. Reduce Volatility (When it matters the most)
-> Reducing Retirement Risk with a Rising Equity Glide Path with Michael Kitces in the Journal of Financial Planning (Link
4. Buffer Assets
-> Interview with Jamie Hopkins on Home Equity
-> Bucket Strategies vs Buffer Assets