What is Sequence of Return Risk?

“Sequence of return risk” means the order in which good and bad years occur during the distribution stage of your financial life can have a powerful impact on how long your retirement assets will last. Any market volatility at all is going to hurt, but if it occurs in the first five years after you begin taking income, there’s a significant chance you could run out of money much faster than you planned. Your account just won’t have enough years to recover.