{"id":827,"date":"2021-01-22T20:16:03","date_gmt":"2021-01-22T20:16:03","guid":{"rendered":"https:\/\/wcfsretirement.com\/WCFSnet\/?p=827"},"modified":"2021-01-22T20:21:02","modified_gmt":"2021-01-22T20:21:02","slug":"order-of-returns-risks-within-an-income-portfolio","status":"publish","type":"post","link":"https:\/\/wcfsretirement.com\/WCFSnet\/2021\/01\/22\/order-of-returns-risks-within-an-income-portfolio\/","title":{"rendered":"Order of Returns Risks Within an Income Portfolio"},"content":{"rendered":"\n<p class=\"has-text-align-center has-medium-font-size\">One of the elements that greatly magnifies the withdrawal risk is the\u00a0<strong><em>Order of Returns Principle<\/em><\/strong>. When your portfolio has losing years it can affect its ability to last through life expectancy more than anything else. The graphs below illustrate this.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"906\" height=\"957\" src=\"https:\/\/wcfsretirement.com\/WCFSnet\/wp-content\/uploads\/2021\/01\/Screen-Shot-2018-06-25-at-3.11.43-PM.png\" alt=\"\" class=\"wp-image-829\" srcset=\"https:\/\/wcfsretirement.com\/WCFSnet\/wp-content\/uploads\/2021\/01\/Screen-Shot-2018-06-25-at-3.11.43-PM.png 906w, https:\/\/wcfsretirement.com\/WCFSnet\/wp-content\/uploads\/2021\/01\/Screen-Shot-2018-06-25-at-3.11.43-PM-284x300.png 284w, https:\/\/wcfsretirement.com\/WCFSnet\/wp-content\/uploads\/2021\/01\/Screen-Shot-2018-06-25-at-3.11.43-PM-768x811.png 768w\" sizes=\"auto, (max-width: 906px) 100vw, 906px\" \/><\/figure><\/div>\n\n\n\n<p class=\"has-medium-font-size\">What\u2019s interesting to note about this graph is that both portfolios earned 8.03% and both Ron and Barb withdrew the same percentage for income on an annual basis. Notice that Ron\u2019s portfolio lasted only 15 years while Barb\u2019s lasted a lifetime . What caused this was not that loses did\u00a0 occur, but when\u00a0 they occurred. For Ron, the declines that occurred early in his retirement had a greater negative impact on his retirement savings than did the declines experienced by Barb that occurred later in her retirement years.<\/p>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<p class=\"has-text-align-center has-large-font-size\"><strong>Got a question about this article?<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-center\" style=\"font-size:24px\">Ask our Financial Experts!<\/p>\n\n\n\n<noscript class=\"ninja-forms-noscript-message\">\n\tNotice: JavaScript is required for this content.<\/noscript>\n<div id=\"nf-form-6-cont\" class=\"nf-form-cont\" aria-live=\"polite\" aria-labelledby=\"nf-form-title-6\" aria-describedby=\"nf-form-errors-6\" role=\"form\">\n\n    <div class=\"nf-loading-spinner\"><\/div>\n\n<\/div>\n        <!-- That data is being printed as a workaround to page builders reordering the order of the scripts loaded-->\n        <script>var formDisplay=1;var nfForms=nfForms||[];var form=[];form.id='6';form.settings={\"objectType\":\"Form Setting\",\"editActive\":\"1\",\"title\":\"Enquiry\",\"created_at\":\"2021-01-21 19:01:08\",\"form_title\":\"Enquiry\",\"default_label_pos\":\"above\",\"show_title\":\"0\",\"clear_complete\":\"1\",\"hide_complete\":\"1\",\"logged_in\":\"0\",\"wrapper_class\":\"\",\"element_class\":\"\",\"key\":\"\",\"add_submit\":\"1\",\"currency\":\"\",\"unique_field_error\":\"A form with this value has already been submitted.\",\"not_logged_in_msg\":\"\",\"sub_limit_msg\":\"The form has reached its submission limit.\",\"calculations\":[],\"formContentData\":[\"email_1523908522614\",\"ask_your_question_using_the_box_below_1611273848571\",\"submit_1523908548082\"],\"drawerDisabled\":\"\",\"allow_public_link\":0,\"embed_form\":\"\",\"ninjaForms\":\"Ninja Forms\",\"changeEmailErrorMsg\":\"Please enter a valid email address!\",\"changeDateErrorMsg\":\"Please enter a valid date!\",\"confirmFieldErrorMsg\":\"These fields must match!\",\"fieldNumberNumMinError\":\"Number Min Error\",\"fieldNumberNumMaxError\":\"Number Max Error\",\"fieldNumberIncrementBy\":\"Please increment by \",\"fieldTextareaRTEInsertLink\":\"Insert Link\",\"fieldTextareaRTEInsertMedia\":\"Insert Media\",\"fieldTextareaRTESelectAFile\":\"Select a file\",\"tableInsertRowAbove\":\"Insert Row Above\",\"tableInsertRowBelow\":\"Insert Row Below\",\"tableInsertColumnLeft\":\"Insert Column Left\",\"tableInsertColumnRight\":\"Insert Column Right\",\"tableDeleteRow\":\"Delete Row\",\"tableDeleteColumn\":\"Delete Column\",\"tableDeleteTable\":\"Delete Table\",\"tableLegacyNotice\":\"This content has tables in the old editor format. 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When your portfolio has losing years it can affect its ability to last through life expectancy more than anything else. The graphs below illustrate this. What\u2019s interesting to note about this graph is that both portfolios earned 8.03% and both [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":828,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/wcfsretirement.com\/WCFSnet\/wp-json\/wp\/v2\/posts\/827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wcfsretirement.com\/WCFSnet\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wcfsretirement.com\/WCFSnet\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wcfsretirement.com\/WCFSnet\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wcfsretirement.com\/WCFSnet\/wp-json\/wp\/v2\/comments?post=827"}],"version-history":[{"count":2,"href":"https:\/\/wcfsretirement.com\/WCFSnet\/wp-json\/wp\/v2\/posts\/827\/revisions"}],"predecessor-version":[{"id":832,"href":"https:\/\/wcfsretirement.com\/WCFSnet\/wp-json\/wp\/v2\/posts\/827\/revisions\/832"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wcfsretirement.com\/WCFSnet\/wp-json\/wp\/v2\/media\/828"}],"wp:attachment":[{"href":"https:\/\/wcfsretirement.com\/WCFSnet\/wp-json\/wp\/v2\/media?parent=827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wcfsretirement.com\/WCFSnet\/wp-json\/wp\/v2\/categories?post=827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wcfsretirement.com\/WCFSnet\/wp-json\/wp\/v2\/tags?post=827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}