Topic 1 – Asset Allocation & Withdrawal Rate Risk

Please watch this video before proceeding to the next topic and marking as “Completed”

Now as a quick review in module one, we discussed retiree’s three greatest risks, longevity risk, sequence risk, and withdrawal rate risk. But now we’re getting into a little bit more detail in module two, and we’ll start with withdrawal rate risk. So asset allocation is a theory that was built on accumulating wealth. It’s an investment strategy. And let me repeat that, and investment strategy, something that we use to grow assets. It aims to balance risk and reward by a portioning, a portion of your portfolios assets, according to an individuals goals. Your risk tolerance and your investment time horizon. How that relates to withdrawal rate risk is this, withdrawal rate risk is defined as the risk that may also threatened us successful retirement income planning strategy. If we don’t plan for it appropriately, what is called this risk of withdrawal rate? Or simply saying the risk of withdrawing out too much money too early, or not maximizing your retirement lifestyle to the fullest because you’re hesitant to withdraw from your portfolio because you may run out too soon. So here’s our challenge. Take asset allocation and use it as a growth strategy during your year accumulation years. It’s used as an investment strategy, not a retirement strategy.

ASK A QUESTION