Gen X Retirement Savers Face Sequence-of-Returns Risk

According to CNBC, Gen X workers are among the least financially prepared for retirement, with only 14% holding a traditional pension compared with 56% of baby boomers, according to research from Alliance's Retirement Income Institute. Financial planners said investors nearing retirement should reduce the chance of being forced to sell stocks during a downturn by building a diversified cash-and-bond reserve, using a glide path, or setting up a temporary bond tent. Advisors also warned that heavy exposure to the S&P 500 can be risky for near-retirees because a major decline close to retirement can lock in losses before the market recovers.