{"id":231511,"date":"2022-04-25T12:01:40","date_gmt":"2022-04-25T12:01:40","guid":{"rendered":"https:\/\/aptuscapitaladvisors.com\/?p=231511"},"modified":"2023-03-16T17:35:47","modified_gmt":"2023-03-16T17:35:47","slug":"helping-clients-tackle-sequence-of-returns-risk","status":"publish","type":"post","link":"https:\/\/aptuscapitaladvisors.com\/helping-clients-tackle-sequence-of-returns-risk\/","title":{"rendered":"Helping Clients Tackle Sequence of Returns Risk"},"content":{"rendered":"

As discussed in a prior post<\/a>, the order in which returns accrue can be the difference between a comfortable retirement and one facing some tough budgeting decisions. The sequence of market returns is out of the investor’s control, but addressing this risk head-on can absolutely be tackled.<\/p>\n

In a post for Rethinking 65, our own James Yahoudy, CFP\u00ae<\/u><\/em> discusses\u00a0this topic and lays out some ideas for advisors to consider. Along with illustrations of the challenge and examples of possible solutions, James describes what many advisors also realize about buying bonds for “safety”:<\/p>\n

In our opinion, the most powerful lever we can pull to manage risk and maintain returns in today\u2019s market is altering allocations away from bonds. This may seem counterintuitive to the conversation of how to manage risk, but we simply believe there is a better way.<\/em><\/p>\n

Allocating to assets with correlation benefits is important but having 60% of your life savings in an asset class with minimal income today, a limited buoy based on the current rate environment, and no ability to grow just doesn\u2019t make sense to us.<\/em><\/p>\n

 <\/p>\n

The full post is great, I recommend hopping over to Rethinking 65 to read the whole piece.<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

Disclosures<\/strong><\/p>\n

 <\/p>\n

This commentary offers generalized research, not personalized investment advice. Nothing in this commentary should be interpreted to state or imply that past results are an indication of future investment returns. All investments involve risk and unless otherwise stated, are not guaranteed.\u00a0<\/em><\/p>\n

This information is for investment adviser use only and should not be distributed to any other parties.<\/em><\/p>\n

The commentary included in this post is for informational purposes only and the opinions, viewpoints, and analysis expressed herein are those solely of Aptus Capital Advisors\u2019 employees, and do not necessarily reflect the services or performance results of Aptus Capital Advisors. It is for informational purposes only and does not constitute a complete description of our investment services or performance. Nothing in this post should be interpreted to state or imply that past results are an indication of future investment returns. Investing involves risk including the potential loss of principal. This material is not financial advice or an offer to sell any product.\u00a0The actual characteristics with respect to any particular client account will vary based on a number of factors including but not\u00a0limited to: (i) the size of the account; (ii) investment restrictions applicable to the account, if any; and (iii) market exigencies at the time of investment. Aptus Capital Advisors, Inc. reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. This post may contain certain information that constitutes \u201cforward-looking statements\u201d which can be identified by the use of forward-looking terminology such as \u201cmay,\u201d \u201cexpect,\u201d \u201cwill,\u201d \u201chope,\u201d \u201cforecast,\u201d \u201cintend,\u201d \u201ctarget,\u201d \u201cbelieve,\u201d and\/or comparable terminology. No assurance, representation, or warranty is made by any person that any of Aptus\u2019s assumptions, expectations, objectives, and\/or goals will be achieved. Nothing contained in this post may be relied upon as a guarantee, promise, assurance, or representation as to the future.<\/em><\/p>\n

This is not a recommendation to buy or sell a particular security. There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time you receive this report or that\u00a0securities sold have not been repurchased. The securities discussed may not represent an account’s entire portfolio and in the aggregate may represent only a small percentage of an account’s portfolio\u00a0holdings.\u00a0It should not be assumed that any of the securities transactions, holdings or sectors discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein. Information was obtained from third party sources which we believe to be reliable but are not guaranteed as to their accuracy or completeness. Aptus reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. \u00a0Be sure to consult with an investment and tax professional before implementing any investment strategy. Investing involves the risk of loss.<\/em><\/p>\n

Advisory services are offered through Aptus Capital Advisors, LLC, a Registered Investment Adviser registered with the Securities and Exchange Commission. Registration does not imply a certain level or skill or training. More information about the advisor, its investment strategies and objectives, is included in the firm\u2019s Form ADV Part 2, which can be obtained, at no charge, by calling (251) 517-7198. Aptus Capital Advisors, LLC is headquartered in Fairhope, Alabama. ACA-2204-20.<\/em><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

As discussed in a prior post, the order in which returns accrue can be the difference between a comfortable retirement and one facing some tough budgeting decisions. The sequence of market returns is out of the investor’s control, but addressing this risk head-on can absolutely be tackled. In a post for Rethinking 65, our own […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[20,127],"tags":[174],"class_list":["post-231511","post","type-post","status-publish","format-standard","hentry","category-blog","category-financial-planning","tag-rethinking-65"],"yoast_head":"\nHelping Clients Tackle Sequence of Returns Risk - Aptus Capital Advisors<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/aptuscapitaladvisors.com\/helping-clients-tackle-sequence-of-returns-risk\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Helping Clients Tackle Sequence of Returns Risk - Aptus Capital Advisors\" \/>\n<meta property=\"og:description\" content=\"As discussed in a prior post, the order in which returns accrue can be the difference between a comfortable retirement and one facing some tough budgeting decisions. 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