How retirees can protect themselves from sequence risk Retirement investors can ward off sequence risk, or the risk of succeeding periods of bad returns during the early part of the golden years, by creating a portfolio with less stock exposure and more fixed-income securities in the years before and after they retire, according to this article on The Wall Street Journal. They also may want to use an “absolute return” strategy for a portion of their portfolio, with the aim of getting broad diversification across asset classes, with preference for risk-adjusted returns to traditional equity and bond strategies. Creating other sources of guaranteed income purposely for the early retirement years, such as a 10-year immediate annuity, is another option worth looking at. --The Wall Street Journal

More Americans are making smarter Social Security choices More seniors are beginning to see the advantages of delaying their Social Security retirement benefits, according to this article on CBS Moneywatch. A report from the Stanford Center on Longevity found the number of seniors who reached their full retirement age but opted to defer their benefits rose to 26% in 2012 from about 13% in 2000. The report also indicates that many older workers started collecting their retirement benefits as soon as they turned 66 because they lost interest in their jobs. Seniors who are in the same situation may consider delaying their benefits and look for a different job that will allow them to work part-time and receive a salary that is enough to replace the amount of deferred benefits. --CBS Moneywatch

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