I’ve Never Seen So Many Retirees Make This Same Mistake

7 snips

Jan 11, 2026

Retirement mistakes are often made by the most careful planners. With people living longer and markets fluctuating, many retirees cling to outdated strategies. Whether it’s sticking with growth stocks or relying on cookie-cutter portfolios, these choices may prove costly. Through case studies, the risks of sequence-of-returns are unveiled, highlighting the importance of aligning portfolios with actual cash-flow needs. A tailored approach, rather than generic templates, can significantly enhance retirement success.

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INSIGHT

Risk Is Mismatch, Not Volatility

Retirement risk is not market volatility but a mismatched portfolio that doesn't reflect your life.
Align spending, timing, guaranteed income, and portfolio purpose before choosing allocations.

ANECDOTE

John's Concentrated Portfolio Collapse

John, 62, had $2M concentrated in NASDAQ positions and kept the same allocation into retirement.
A 33% market drop plus a 5% withdrawal turned his $2M into about $1.24M, demonstrating sequence-of-returns damage.

INSIGHT

Losses Require Bigger Recoveries

Drawdowns require larger percentage gains to recover because losses compound asymmetrically.
Early retirement drawdowns combined with withdrawals can permanently impair long-term portfolio sustainability.

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Most retirees who make this mistake aren’t reckless. They’re careful. They’re doing what they believe is responsible, and that’s what makes it so painful to see when it backfires.

James explains why the same portfolio mistake is showing up more than ever, whether someone has managed their own investments for decades or relied on professional advice. Different paths, same outcome: a portfolio that isn’t built around how money is actually used in retirement.

With people living longer, retiring earlier, and markets remaining volatile, overly simplified portfolio advice has become a real risk. Through two real case studies, James shows how sticking with what worked during accumulation can expose retirees to sequence-of-returns risk, while default “safe” portfolios can quietly limit flexibility and opportunity when they’re not tied to actual cash-flow needs.

The takeaway is clear: retirement success doesn’t come from being aggressive or conservative. It comes from alignment. When spending, timing, guaranteed income, and risk are understood first, portfolios can be built intentionally — using growth and protection as tools, not templates.

The real risk in retirement isn’t volatility. It’s mismatch.

Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation.

The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal.

Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements

Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written agreement with Root Financial.

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