How long until sequence of returns risk no longer a concern?

[JJpop]

Well it kind of depends upon how old you are,how much money you have and what your spending is. There certainly is no one answer.

 

[indiajust]

https://blog.thinknewfound.com/sequence-risk/ Lots of ways of thinking about sequence of return risk here.

 

[Archman]

Won't they lose some money waiting until 70.5 , as SS doesn't do back pay ?

But that risk is mitigated by the ability to easily start SS earlier if needed.

And it’s 70. You don’t gain anything by waiting until 70.5.

Perhaps they were thinking about the RMD, which now is 72.

 

[NotYourAverageJones]

Sounds like some combination of SS, pension, and annuity.

If it is that, possible issues are:
SS is not really indexed to inflation. What if it gets cut 20%.

I meant that our expenses were adjusted to consider inflation cost on them.

Company pensions can disappear, although some are insured at least partially. Yes, it is. But anything is possible, so we do have alternative savings....
Annuities depend upon the insurance company, failures are rare, but the time horizon is very long.
We don't have and don't plan on any annuities.

We currently have a mil. retirement, tax-free VA combat disability, will have a mega corp pension, and we didn't factor in SS for expense spending because that's many years away for us. SS is gravy on the mash potatoes and will just subsidize our fun spending when we draw it down the road. Also we have a mid 7-figure investment portfolio and zero debt/liabilities.

It's maybe not how others might want to do it or would make sense to their situation, but we have really looked hard at it while working with a FA, estate planner and a few tax advisers to make sure it makes sense for our situation.