Comments on: A Simple Guide to Sequence of Return Risk https://fourpillarfreedom.com/a-simple-guide-to-sequence-of-return-risk/ Sharing insights on how to grow wealth and gain freedom. Mon, 21 Oct 2019 20:28:24 +0000 hourly 1 https://wordpress.org/?v=6.6.1 By: Zach @ Four Pillar Freedom https://fourpillarfreedom.com/a-simple-guide-to-sequence-of-return-risk/#comment-4068 Wed, 07 Mar 2018 16:27:18 +0000 https://fourpillarfreedom.com/?p=28714#comment-4068 In reply to Gasem.

Thanks for the in-depth comment, Gasem! Taxes can take a huge chunk of your savings if you don’t navigate them carefully.

]]> By: Gasem https://fourpillarfreedom.com/a-simple-guide-to-sequence-of-return-risk/#comment-3889 Mon, 05 Mar 2018 03:00:43 +0000 https://fourpillarfreedom.com/?p=28714#comment-3889 Another tip is to plan for taxes and expenses. I just did an analysis on Roth conversion and found nearly emptying my IRA into a Roth resulted in $100K greater portfolio size on a $1M portfolio after 30 years of withdrawal. I have money in pre-tax, post tax, and already been taxed accounts. When RMD comes around the government forces you to annuitize your IRA which can force you into a higher tax bracket so you wind up paying more taxes than you want. By Roth converting you reduce the size of the RMD and you can fulfill your income needs by pulling a blend of money from the three account types. This flexibility becomes critical when one spouse dies, as the taxes on a single can kick you up 2 tax brackets compared to the taxes on a married filing jointly, Basically Uncle Sam moves into your bedroom and eats an extra XX% of your stash. If you plan early enough you have some room to keep the wolf at bay. How this relates to SORR is if you Roth convert in early retirement the taxes are a kind of SORR. The way around that is to plan the for the taxes prior to retirement. Understanding and planning for taxes is a REALLY good reason to work one or two or three more years IMHO.

]]> By: The Sunday Best (3/4/2018) - Physician on FIRE https://fourpillarfreedom.com/a-simple-guide-to-sequence-of-return-risk/#comment-3790 Sun, 04 Mar 2018 08:57:50 +0000 https://fourpillarfreedom.com/?p=28714#comment-3790 […] Working after FI is one way to avoid sequence of return risk. For a clear understanding of what I’m talking about, look to Four Pillar Freedom’s A Simple Guide to Sequence of Return Risk. […]

]]> By: Weekend Reading: Maxed Out RRSP Edition - Financial Freedom https://fourpillarfreedom.com/a-simple-guide-to-sequence-of-return-risk/#comment-3763 Sun, 04 Mar 2018 00:41:30 +0000 https://fourpillarfreedom.com/?p=28714#comment-3763 […] Four Pillar Freedom blog takes an in-depth look at sequence of return risk and what it means for your […]

]]> By: Zach @ Four Pillar Freedom https://fourpillarfreedom.com/a-simple-guide-to-sequence-of-return-risk/#comment-3180 Wed, 28 Feb 2018 13:14:16 +0000 https://fourpillarfreedom.com/?p=28714#comment-3180 In reply to SMM.

I believe there have been a couple 10-year periods where returns have been negative. I’m actually working on a post to explore investment returns based on rolling 10-year periods, so stay tuned for that 🙂

]]> By: SMM https://fourpillarfreedom.com/a-simple-guide-to-sequence-of-return-risk/#comment-3156 Mon, 26 Feb 2018 19:47:26 +0000 https://fourpillarfreedom.com/?p=28714#comment-3156 Wow! Scenario 1 was a scary chart. Do you have a chart where in the past there has been negative returns for over a decade?

I think after the first year, I would want to go totally conservative.

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