How can I protect my retirement savings from sequence-of-returns risk?

@fred.nader 

To protect your retirement savings from sequence-of-returns risk, consider the following strategies:

1. Diversify your investments: Spread your retirement savings across different asset classes, such as stocks, bonds, real estate, and cash. Diversification helps reduce the impact of poor performance in any single investment.
2. Use a bucket approach: Divide your retirement savings into different time horizons or "buckets." The first bucket should hold enough cash and low-risk investments to cover your expenses for the first few years of retirement. The second bucket can be allocated to slightly riskier investments, and the third bucket could consist of higher-risk investments with a longer time horizon. By having cash reserves for the initial years, you can avoid selling investments during a market downturn.
3. Implement a withdrawal strategy: Be mindful of your withdrawal rate during market downturns. Consider using the "4% rule" as a guideline, which suggests withdrawing 4% of your portfolio value in the first year of retirement and adjusting that amount for inflation in subsequent years. By maintaining a sustainable withdrawal rate, you reduce the chances of depleting your savings too quickly during a downturn.
4. Consider annuities: Annuities provide guaranteed income for life and can act as a protective shield against market volatility. By converting a portion of your retirement savings into an annuity, you ensure a stable income stream regardless of market conditions.
5. Continuously monitor and adjust: Keep a close eye on your retirement investments and adjust your portfolio allocation based on market conditions and your risk tolerance. Regularly rebalancing your portfolio can help maintain an appropriate mix of investments.
6. Seek professional financial advice: Consult with a qualified financial advisor who specializes in retirement planning. They can help assess your unique situation, develop a personalized strategy, and provide guidance during market volatility.

Remember, sequence-of-returns risk cannot be entirely eliminated, but these strategies can help minimize the impact of market downturns on your retirement savings.