Episode 376: What Is Sequence-of-Returns Risk? - The Retirement Withdrawal Order That Can Make or Break Your Plan

Two people retire on the same day with the same savings, the same investments, and the same average return over 20 years. One still has money in their 90s. The other runs out in their early 80s. Same numbers, completely different outcomes.

In this episode of Think Smart with TMFG, we break down sequence of returns risk: why it barely matters while you're saving, but can make or break your retirement depending on whether the good years or bad years show up first. We also cover a wrinkle unique to Canadian retirees: RRIF minimums, and why most people don't realize a RRIF withdrawal doesn't have to be taken in cash.

We also talk through practical ways to manage this risk: building a cash wedge, using CPP and OAS to reduce reliance on your portfolio in down years, and why fixed income is a strategic tool, not just a conservative one.

📌 Want to know how your retirement plan would hold up against a downturn hitting early? Feel free to reach out, we'd be happy to run the scenarios with you:

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🎧 Listen to the full episode on YouTube.

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Hosting this episode: Mike Connon (Senior Financial Advisor) and Ingrid Kucera (Financial Advisor).