THE NEW HOLISTIC RETIREMENT • 41 Not exactly what you want to do when retirement is on the h orizon! The 2000 an d 2008 market crashes also uncovered another r isk : sequ ence of retu rn risk. Sequence of returns describes the pattern of market experience— which years the market is up and which years the market is down. Throughout this book, we’ve talked a lot abo ut average returns. But t he pattern of t hose ret urns is al so important— especially once you’re retired and need income. Whe n savi ng, the sequence of ret urns doesn’t really mg oaotdt e, rt h. eA sf i nl oanl gr eassu ltths ewai lvl eursaugael lryebt ueronk iany .a 4 0 1 ( k ) o r I R A i s But, in the early 2000s, retirees across America dyoisucoavreered that the sequence of returns matters a lot when liquidat ing your assets—whe n yo u need to withdr aw funds to use as retirement income.
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