As the old saying goes, the secret to investing success is not timing the market, but time in the market. The longer your money stays invested and untouched, the better your odds of achieving solid long-term returns. But once you start withdrawing money in retirement, you could be exposed to “sequence of returns” risk.

If the market takes a downturn early in retirement, you are effectively losing money on both ends: the value of your portfolio is falling, and you are taking withdrawals. That means that even if the market recovers in the last five or ten years of your retirement, the dwindling balance will make it more difficult to achieve significant returns and fund your retirement. 

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