(New York)

That is quite a counterintuitive headline, but in an odd way, it could not be more true. Bloomberg has put out a piece, which echoes many advisors, that the current bull market could actually end up hurting many retirees. The reason why is that many have experienced hefty gains in the last decade and feel comfortable retiring. However, after such a sharp run higher, the market is likely to experience a steep correction. For retirees seeking to steadily withdraw money from their accounts, this could pose a major problem, as a drop in the market could cause such significant damage to portfolio value that even outperformance in subsequent years may not make up for it.

FINSUM: This is a valuable point that all retirees and their advisors need to bear in mind. Portfolio construction and planning definitely need to take this threat into account.