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Are there strategies that can mitigate the risk of early portfolio failures?

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10 Posted

Are there strategies that can mitigate the risk of early portfolio failures?

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10

Try using decision rules. Something like the Capital Preservation Rule can kick in and rescue the portfolio if things go south early in retirement. One thing a person can also try is to start with a lower initial withdrawal rate and couple that with the Prosperity Rule to give raises when the portfolio is really safe and gradually increase real withdrawals.

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