2026 Charting the Course

When retirement begins, the timing of returns can sometimes matter more than the overall returns. As the chart shows, early losses paired with ongoing withdrawals can permanently impact a portfolio—even if long‑term average returns look fine on paper—because you’re pulling dollars out when balances are lowest. This risk is called “sequence of returns risk” and is why a portfolio with an appropriate risk profile at retirement is an important part of your retirement strategy.   

Inflation as measured by CPI may have moderated over the last several months, but that doesn’t mean price changes have affected all goods and services equally. Over the last 25 years, food, housing, and medical care costs have risen at a rate greater than overall inflation. On the flip side, technological advancements and efficiencies have driven down the cost of goods like televisions, software, and cell phone services.