I bonds

[Nutria]

SORR

Google fails me. What is SORR?

[kork13]

Google fails me. What is SORR?

Sequence of return risk.

It's mildly complex, but it's basically the risk of you retiring right before a massive drop in the markets (and the value of your investments). Problem being that if you are withdrawing from your investments after a big drop, it takes more shares to meet your absolute dollar figure needs. By burning through more shares than expected during your first 5-10 years of retirement, it increases the risk that your investments will run out before drawing your last breath.

That may not be a great explanation... But you can Google the concept and get a better idea.

[Nutria]

Sequence of return risk.

It's mildly complex, but it's basically the risk of you retiring right before a massive drop in the markets (and the value of your investments). Problem being that if you are withdrawing from your investments after a big drop, it takes more shares to meet your absolute dollar figure needs. By burning through more shares than expected during your first 5-10 years of retirement, it increases the risk that your investments will run out before drawing your last breath.

That may not be a great explanation... But you can Google the concept and get a better idea.

Thanks. I'd heard of that before, but couldn't remember what it was.