49 - Sequencing Risk Explained & Why It Matters

06/07/24 • 15 min

In last week's episode Benjamin explained that the risk of running out of money doesn't just come down to market risk. You need to understand something called 'sequencing risk'.
Fear not, it's not as complicated as it sounds.
It is however a tricky issue to navigate in any retirement plan, so arming yourself with the fundamentals is key.
Fortunately this episode helps you do exactly that.

Join Benjamin Mitchell (themoneyscot), serial hater of financial jargon, as he helps you to never make another financial mistake.
Getting on top of your personal finances doesn't need to be complicated or scary. Arm yourself with the only knowledge you need to transform yourself from money novice to money nerd!
Take my 5 minute retirement assessment (can you already afford to retire?) 🚀
Disclaimer - please note that nothing in this podcast can be relied upon as financial advice and the content is provided purely for information and guidance purposes. Please seek independent, regulated financial advice relevant to your situation.

Previous Episode

48- How To Avoid Running Out Of Money

So you've worked hard all your life to build up a healthy level of investments and pensions.
Naturally, the biggest worry you'll then have is how to make sure your wealth lasts for life.
How can you avoid running out of money when there are so many unknowns?

You don't know how long you will live
You don't know how markets are going to perform
You don't know how inflation is going to behave.

How can you develop a solid financial plan amidst all this uncertainty?!
This episode provides a backdrop to concerns you may be having and tables the risks faced to long-term wealth and happiness.

Next Episode

50- Outliving Your Money

This episode concludes our 'mini-series' on risks to be aware of in retirement.
Longevity risk is the risk that your investments won't last as long as you live.
So what does that mean for your financial plan?
In this episode Benjamin explains the real risk is the risk of 'low returns' and if you are to have any chance of combatting longevity risk then you need to stay true to the fundamental principles you've adhered to pre-retirement: trust in the long-term and relying on the wealth creation engine that is the stock market.