Sequence of Returns Risk Visualizer
Two retirees with the same average return can have dramatically different outcomes depending on when bad years hit. Early losses combined with withdrawals create a "double dip" that permanent portfolios never recover from. This visualizer shows both scenarios side by side so you can see exactly why sequence risk matters and what to do about it.
%
%
Strategies to reduce sequence risk:
• Cash buffer (bucket strategy): Keep 1–2 years of spending in cash — never sell stocks in a down market.
• Flexible withdrawals: Cut discretionary spending 10–15% in down years.
• Bond tent: Hold extra bonds at retirement (e.g., 50%) and gradually shift to stocks as you age past 70.
• TIPS / I-bonds: Inflation-protected bonds guarantee purchasing power for fixed expenses.
• Annuity floor: Cover essential expenses with guaranteed income (Social Security + annuity) so you never have to sell in a crash.
• Cash buffer (bucket strategy): Keep 1–2 years of spending in cash — never sell stocks in a down market.
• Flexible withdrawals: Cut discretionary spending 10–15% in down years.
• Bond tent: Hold extra bonds at retirement (e.g., 50%) and gradually shift to stocks as you age past 70.
• TIPS / I-bonds: Inflation-protected bonds guarantee purchasing power for fixed expenses.
• Annuity floor: Cover essential expenses with guaranteed income (Social Security + annuity) so you never have to sell in a crash.