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Personal Finance

What is sequence of returns risk?

Quick Answer

Sequence-of-returns risk is the increased portfolio failure rate when poor market returns hit in the first 5–10 years of retirement. Withdrawing during a bear market locks in losses that compound for decades.

Impact of early bad returns versus late bad returns on retirement portfolio outcomes.
Warren Team
Updated April 26, 2026
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Important Disclaimer:

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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