Archive · 29 Jul 2025
Advisor Warns of Sequence Risk Impacting Retirement in India
Imagine you're saving for retirement.
A financial advisor says a 'hidden danger' called sequence risk can hurt your money.
This is when bad market times happen early in retirement.
If investments go down soon after you retire, your money runs out faster.
The advisor suggests having some money in safe places, adjusting how you invest, and being ready to take out less money if the market is bad.
It's like having a backup plan to make sure you have enough money for your whole retirement.
Financial advisor Milind Deogaonkar warns of sequence risk in retirement planning.
Sequence risk involves the impact of market performance during the early years of retirement.
Retirees A and B with identical portfolios, but different early market returns, highlight sequence risk.
Deogaonkar suggests strategies to combat sequence risk, including bucket strategy and flexible withdrawals.
He stresses the importance of protecting lifestyle over beating the market in retirement.
- Who
- Milind Deogaonkar, a wealth advisor, warns about sequence risk.
- What
- Sequence risk can lead to financial ruin in retirement.
- When
- The timing of market performance early in retirement is crucial.
- Where
- N/A
- Why
- To highlight the risk of early-retirement volatility impacting financial security, even with good savings.
- Advisor
- Milind Deogaonkar
- Risk Addressed
- Sequence of Returns Risk
- Key Issue
- Market performance during early retirement
- Example
- Identical portfolios with differing early returns
- Strategies
- Bucket Strategy, rebalancing, flexible withdrawals, and guaranteed income