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There's a new Dr. Wade Pfau clone bringing amazing insights to "Retirement Income".

The Stunning Problem With The 4% Retirement Income Rule In One Chart

Are you in the “retirement bubble”? The retirement bubble are the few years leading up to retirement and the first few years in retirement when your retirement nest egg is most vulnerable to market shocks. Why? It is because of sequence of investment returns risk. Sequence of investment returns is most dangerous when you are withdrawing money from your portfolio, which is exactly what most retirees need to do in retirement.


Of course, the DOW declined by about 90% from it's 1929 high (381.17) to its 1933 nadir (40.56). If that's not a "sequence of returns risk", I don't know what is. Yet, a 1929 retiree survived for 30 years of withdrawals.

One thing I'm sure of, any solution to the "sequence of returns risk" that requires you to pay a higher fee to a financial advisor or insurance company is deleterious to your wealth.

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