Disclaimer: The calculations in this content are hypothetical, based on real client situations and specific mathematical assumptions. The assumptions are outlined in this document; for a full breakdown, contact [email protected].

Listen, I need to tell you about something that could be the difference between a comfortable retirement and a financial disaster.

It's not about how much your investments return. It's about WHEN they return it.

I know that sounds confusing. We've been conditioned to believe that average returns are what matter. "The market averages 7% over the long term," they say. "Just stay invested and you'll be fine."

But here's the plot twist that could cost you millions: The sequence of those returns matters more than the returns themselves.

While everyone's obsessing over finding the perfect investment mix, I just ran numbers that prove the order of returns can make or break your retirement - regardless of your average performance.

And the results are absolutely staggering.

So if you're here for the usual "buy and hold forever" advice, you might want to scroll past this one (no hard feelings!). But if you're interested in seeing how sequence of returns could impact your retirement wealth... stick with me.

Because what I'm about to show you will change everything you think you know about retirement risk.

While Everyone Else Is Chasing Returns, Smart Retirees Are Managing Sequence

Here's what drives me absolutely crazy about traditional retirement planning.

Most people - and most advisors - are obsessed with average returns. They'll show you charts proving that stocks return 7-10% over the long term. They'll argue about whether to add international exposure or tilt toward value stocks.

But they're completely ignoring the elephant in the room: sequence of returns risk.

Here's the simple truth: If you retire at the wrong time and experience poor returns early in retirement, it doesn't matter what your average returns are over 30 years. The damage is already done.

It's like getting food poisoning on day one of a month-long vacation. Sure, the other 29 days might be great, but that first day ruins everything.

The same principle applies to retirement planning.

The Three Retirement Strategies (And Their Shocking 25-Year Results)

Let me show you exactly what I mean with real numbers from the last 25 years.

Starting scenario: $1 million, withdrawing $40,000 annually (4% withdrawal rate). Here are three different approaches:

Strategy 1: All-Equity Approach "I'll put everything in the stock market and ride out the volatility."

Strategy 2: Traditional 60/40 Portfolio "I'll balance risk with 60% stocks and 40% bonds."

Strategy 3: Intentional Planning "I'll split the money - half for guaranteed income, half for uninterrupted growth."

Now here's where it gets interesting. I used actual market returns from 2000-2024 - including the dot-com crash, the 2008 financial crisis, and everything in between.

The results will shock you.

The Results That Prove Everything You Know Is Wrong

All-Equity Strategy Result: Starting with $1 million in 2000 and withdrawing $40,000 annually from pure equity investments, you'd have $200,000 left today.

That's an 80% loss of your principal while taking out less than the "safe" 4% withdrawal rate. The sequence of returns destroyed your portfolio despite decent long-term market performance.

Traditional 60/40 Strategy Result: Same scenario with a "conservative" 60/40 split: $1.8 million remaining.

Much better, but still not great considering you started with $1 million 25 years ago.

Intentional Planning Result: Here's where it gets really interesting. I took $500,000 and focused on guaranteed income. The other $500,000 went to pure growth with no withdrawals.

The result: $3 million.

Let me repeat that: $3 million versus $200,000 using the same market conditions and the same starting balance.

That's a $2.8 million difference based purely on strategy, not performance.

The Sequence of Returns Revelation

But here's where it gets really mind-blowing. I took those same 25 years of returns and randomized the order. Same returns, different sequence.

What happened was remarkable:

• Sometimes the all-equity approach performed best

• Sometimes intentional planning won

• In almost no scenario did the 60/40 split ever come out on top

The 60/40 approach occasionally fell in the middle, but usually performed worst. The randomization proved that blindly closing your eyes and picking stocks is almost better than using a traditional balanced portfolio.

But here's the kicker: No matter how I randomized the returns, intentional planning was always within range. It never had the worst outcome. It consistently provided more money than you started with.

That's the power of managing sequence of returns risk.

Why This Changes Everything About Retirement Planning

Traditional retirement planning has a fatal flaw: It assumes you can control when bad returns happen.

The reality is, if you retire in 2000 or 2007 - right before major market crashes - your retirement is in serious trouble regardless of what happens over the next 20 years.

This is called sequence of returns risk, and it's the silent killer of retirement portfolios.

When markets crash early in retirement, you're forced to sell investments at depressed prices to fund your lifestyle. Those shares are gone forever. They can't participate in the eventual recovery.

Intentional planning eliminates this problem entirely.

By securing your income first, you never have to sell investments during market downturns. Your growth money can ride out any storm and participate fully in every recovery.

It's the difference between being a forced seller and a patient investor.

The Question That Changes Everything

Here's the question you need to ask yourself: Are you willing to let it all ride and potentially watch your nest egg dwindle, or do you want to be intentional and watch your nest egg grow?

Most people choose to let it all ride because they don't understand the alternatives. They think it's either "conservative" (and poor) or "aggressive" (and rich).

But that's a false choice.

Intentional planning lets you be conservative with your income and aggressive with your growth. You get the best of both worlds: guaranteed lifestyle protection and maximum wealth accumulation.

The Math That Doesn't Lie

Let's look at the numbers one more time:

All-Equity (Let it all ride):

• Started with: $1 million

• Ended with: $200,000

• Risk level: Maximum

• Sleep quality: Terrible

60/40 Traditional:

• Started with: $1 million

• Ended with: $1.8 million

• Risk level: "Moderate" (but still significant)

• Sleep quality: Poor during downturns

Intentional Planning:

• Started with: $1 million

• Ended with: $3 million

• Risk level: Controlled

• Sleep quality: Excellent

The difference is $2.8 million in favor of intentional planning.

And remember - this used actual market returns over 25 years, including two major crashes and multiple corrections.

The Behavior Problem That Nobody Talks About

Here's what really gets me fired up: Traditional approaches force you to make emotional decisions at the worst possible times.

When your portfolio drops 30% and you need to withdraw money for living expenses, what do you do? You sell at the bottom because you have no choice.

Your behavior becomes your enemy.

With intentional planning, market volatility becomes irrelevant to your lifestyle. Your income is guaranteed. Your growth investments can stay invested through every storm.

You become a patient investor instead of a forced seller.

But Here's the Thing...

This isn't about market timing or predicting the future. I don't know what the next 25 years will look like. There will be ups and downs we can't predict.

But I do know this: Sequence of returns risk is real, and it can destroy retirement plans regardless of long-term market performance.

The question is whether you want to hope for the best or plan for reality.

Your Move

Look, I'm not saying everyone should abandon traditional portfolios tomorrow. But you should understand how sequence of returns could impact your specific situation.

The math is clear: Intentional planning consistently outperforms traditional approaches while reducing risk.

If you're approaching retirement and want to see how sequence of returns might affect your wealth, the analysis might surprise you.

The question is: Are you going to keep rolling the dice with traditional approaches? Or are you going to get intentional about managing sequence risk?

If you want to see what this might look like in your specific situation...

I'm offering a limited number of 1-on-1 Possibility Planning sessions for people who are serious about understanding and managing sequence of returns risk. It's not for everyone - I'm looking for people with substantial assets who want to see their real numbers.

During your private session with me, we'll analyze your specific sequence of returns risk, model different scenarios, and show you exactly how intentional planning could protect and grow your wealth.

Click here to schedule your 1-on-1 Possibility Planning session →

Because the best retirement strategy isn't about finding perfect investments. It's about managing the risks that could destroy your plan.

And sequence of returns is the biggest risk nobody talks about.