Why ‘average returns’ DO NOT matter in retirement!

Do you have retirement on your mind? Have you already retired in the last year or two?

Average return is misleading

As you think about your retirement and investment portfolio, it’s common to focus on achieving an “average return” and think that’s your ticket to not outliving your retirement savings. But do you understand that average returns in retirement are largely meaningless?

Sequence of returns is what matters

When it comes to managing your retirement savings, you need to understand the concept of ‘sequence of returns’ instead of focusing on your average portfolio return.

In other words, the timing of good returns or bad returns early in retirement or during the first 5-10 years of retirement matters significantly more than your basic average return over those years.

Watch the video below

Learn more about why average returns are not the most important part of your investment portfolio, both as you approach retirement and enter retirement, by watching below or click here to watch on YouTube.

Thank you for watching and I hope you have a blessed day!

– Kaleb Paddock, CFP®

You can learn more about Ten Talents and Kaleb, a financial advisor based in Parker, Colorado, by clicking here.

Kaleb can be reached at (303) 961-4397 or kaleb@tentalentsfp.com. You can schedule a conversation with Kaleb using his online calendar.