The Sequence of Returns Conversation

Sequence of Returns Promotional Video

Negative sequence of return risk is one of the biggest risks to the predictability and sustainability of your client’s retirement income plan. As most clients have benefitted greatly from the long bull market run of the past decade and begin to transition from the accumulation phase to the distribution phase of their retirement income, negative sequence of return risk can pose significant impact to retirement planning. This risk is one that many clients do not understand especially as they start to take distributions toward retirement.

DMI’s Director of Marketing, Glen Setchfield gives us a sneak peek of the upcoming DMI University Sequence of Returns Webinar held on July 29, 2021 and how you can continue this conversation with your clients.

Risk within Context

The sequence of returns may have less of an impact on the portfolio of a long-term investor who is no longer putting money in, nor taking money out. However, the relationship between an investor’s rate of withdrawal and the sequence of returns can have a dramatic impact on a portfolio’s ability to last during the withdrawal period (usually during retirement).

Your best bet is to ensure you have a careful strategy to help mitigate the effects of a bear market and help avoid running out of money.

A Bear Market Strategy

A few ways you can help shield a client’s retirement against the consequences of a bear market include but are not limited to the follow strategies:

  • Lower Expenses Early On in Retirement.
  • Consider a Supplemental or Second Career.
  • Delay Retirement.
  • Create Income Buckets allocated to market risk and need or explore a Fixed Income strategy.

We highlight these strategies & more for your clients in our Bear Market strategy white paper, ” It’s Never Time to Hibernate, What a Bear Market Means for Retirees” perfect for your clients. For qualifying DMI partner agents advisors, we can brand this brochure to your business.

Sequence of Returns Webinar – DMI University

Designed for agents and advisors, DMI University’s 40-minute Sequence of Returns webinar will examine negative sequence of returns and present strategies for risk reduction for pre-retirees and early-stage retirees. Our webinar host, Erick Lindewall, DMI VP of Annuity Sales, will dynamically communicate how important it is that clients understand this risk and how agents and advisors can guide the conversation with clients, support their retirement strategy, and inform them of potential risks to their income during retirement.

If you have clients that are retiring or approaching retirement and plan to withdraw money from their portfolio during retirement, don’t miss this latest webinar in our DMI University series of webinars. Register Today: