Adam Grossman tells a story that has stayed with him since boyhood. “I remember once I was at my grandparents’ house and this older fellow came in,” he said on Morningstar’s The Long View podcast with host Christine Benz. “After he left, my father explained that he had been my…
andfather’s accountant. And… something had gone wrong with his financial plan
And he had to go back to work… in his 70s.” That image became the foundation of how Grossman thinks about retirement risk. The real danger is the cruel arithmetic of withdrawing from a portfolio while markets are falling, a problem academics call sequence-of-returns risk. Quick Read – SPDR S&P 500 ETF Trust (SPY) lost 13.54% from January 2000 through December 2010 with two bear markets, forcing retirees with no cash buffer to sell shares into both selloffs.
Financial advisor Adam Grossman recommends holding 5-7 years of retirement withdrawals in bonds and cash, with 10-year Treasury yields at 4.45% offering meaningful real income opportunities. – Retirees face sequence-of-returns risk where portfolio withdrawals during market downturns can derail retirement plans, and Grossman warns of a potential lost decade of flat or negative stock returns ahead, making a cash and bond defense critical before markets decline. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and SPDR S&P 500 ETF didn’t make the cut. Grab the names FREE today. The Defense: Five to Seven Years in Bonds and Cash Grossman’s prescription is straightforward. “The simplest way, an investor’s best defense is through asset allocation.