Many investors think that the best way to maximum their spending rate in retirement is to invest in the asset classes with the highest long-term returns. And that is true to an extent, but managing drawdowns also plays a very important role in maximizing withdrawal rates. In this episode, we take an in depth look at the management of sequence risk in retirement and the different ways to approach it.
We discuss the importance of diversification, different withdrawal strategies and the potential role of alternative asset classes in retirement portfolios. We also look at how low future expected returns for both stocks and bonds impact withdrawal rates.
We hope you enjoy the discussion.
