WHITE PAPER #1 | BY TIM CLAIRMONT
Our quarterly White Paper is designed to share our insight behind the strategies, risks, and decisions that can shape long-term outcomes.
This paper looks at Reverse Dollar Cost Averaging and why the timing of withdrawals can matter so much in retirement.
Some retirement risks are obvious. Others are easy to overlook until they begin to quietly affect long-term outcomes. Our very first white paper explores one of those overlooked risks: what happens when a retiree must take income from investments during market declines.
This paper also highlights Tim’s early thought leadership around what he described as Reverse Dollar Cost Averaging (RDCA), a concept closely tied to what is now more widely discussed as sequence of returns risk. It explains why average return alone does not tell the full story, and how the timing of returns can materially shape retirement sustainability.
Why it matters
A portfolio may recover from a market decline, but the shares sold to fund income during that decline are gone for good. This paper helps explain why that matters and why understanding this risk can be an important part of retirement income planning.
What you'll learn
- Why taking withdrawals during down markets can have an outsized impact on long-term wealth
- How the order of market returns can matter more than average return alone in retirement
- How RDCA helps frame a risk that many retirees and advisors may underestimate
- Why timing can create very different outcomes, even under similar long-term return assumptions
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Our White Paper series is designed to share the insight behind the strategies, risks, and decisions that can shape long-term outcomes.
Each paper takes a focused look at an important retirement planning topic, offering added context around the ideas that often influence long-term decisions. The goal is to provide a more thoughtful, approachable way to explore concepts that are often oversimplified.
