Joe Anderson
ABOUT Joseph

As CEO and President, Joe Anderson has created a unique, ambitious business model utilizing advanced service, training, sales, and marketing strategies to grow Pure Financial Advisors into the trustworthy, client-focused company it is today. Pure Financial, a Registered Investment Advisor (RIA), was ranked 15 out of 100 top ETF Power Users by RIA channel (2023), was [...]

Alan Clopine

Alan Clopine is the Executive Chairman of Pure Financial Advisors, LLC (Pure). He has been an executive leader of the Company for over a decade, including CFO, CEO, and Chairman. Alan joined the firm in 2008, about one year after it was established. In his tenure at Pure, the firm has grown from approximately $50 [...]

When looking at saving money versus taking distributions from your portfolio, there are two different mindsets you have to consider: retiring in a bull market versus retiring in a bear market.  Joe explains that taking distributions from your overall portfolio has everything to do with the sequence of returns, not necessarily the overall rate of returns.   What exactly is the sequence of returns risk?  Find out in this episode short.

0:26 “When you start taking distributions from your overall portfolio, it has everything to do with the sequence of returns, not necessarily the overall rate of returns”

1:03 “The fact of the matter is, if you have $100,000 saved, it’s down 30%, you have $70,000.  Then you have 30% on top of the $70,000, it’s $21,000; you don’t even have your capital back.  And then if you’re taking distributions from the account, it’s very, very difficult to get caught back up”

1:20 “So if you retire in a bull market, your portfolio is growing, so you’re in a lot better shape but no one knows what’s going to happen to the market, that’s why you need to have a game plan”

1:29 “So what are some things that you need to do?  Take a look at your overall portfolio.  Do you have some safety in your portfolio?  Are you making sure that you’re pulling and taking that income from the right area when the markets are down?”

1:40 “There are a lot of different things that you have to consider in regard to the overall sequence of returns in the overall market because that’s where people are going to screw up”