Nova 401(k) Associates
Nicholas Pension Consultants
Compensation Strategies Group, Ltd.
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|Navigating Retirement Risks: Longevity and Volatile Markets|
Feb. 3, 2015
"Timing risk arises when a retiree takes withdrawals -- to pay living expenses in retirement -- from a portfolio that is declining in value ... The withdrawals in down markets have the effect of locking in losses, because the losses on the withdrawn money can never be recovered.... Unfortunately, when we retire we won't know whether the markets over the next 5 or 10 years will be up or down. This emphasizes the need to dampen volatility while investing to capture market returns."
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