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Navigating Retirement: Understanding Sequence of Returns Risk
This chapter shares the journey of an individual transitioning from a novice investor to a retirement planner, highlighting the impact of market downturns on portfolio sustainability. It delves into the critical concept of sequence of returns risk and emphasizes the importance of asset diversification and strategic allocation to navigate volatile markets. The discussion critiques traditional retirement planning tools like target date funds, advocating for more flexible investment strategies to safeguard financial health in retirement.