In just the past five years, we have had three U.S. market downturns of 20% or more. We've had the worst ever five-year time period for U.S. bonds. And we've had plenty of headlines that would cause even the most disciplined investors to get a little shaky in their thoughts about the future. So what can you do as an investor to design the right portfolio heading into your retirement to make sure that you're giving yourself the best possible chance of success. That's what we're going to talk about today. And when we

talk about that, really this comes down to understanding what are the three biggest risks that you

face, that I face, that every single investor faces that we need to protect against. We don't want to

start with just a 60-40 portfolio. Traditionally, that was thought of

that's the retirement portfolio you're going to have because that has a right mix of stocks and bonds,

but that's not unique to you. What's unique to you is building a portfolio that protects against

the three biggest risks. What are those risks? Number one, volatility. How do you ensure that you

are protecting against sequence of return risk? We're

going to talk about that in just a second. Number two is inflation risk. How do we not make sure

that we're so focused on the volatility risk on protecting against that that we lose sight of

an even bigger risk, which is the risk of inflation eroding our purchasing power over the

course of our retirement? And then finally, number three is

the emotional or behavioral risk of how do you structure the right portfolio to minimize the

chance of us making a bad mistake by making the wrong decision at the wrong time. So let's dig into that.

Number one, that risk of volatility, this is probably the thing that's on most investors' mind.

What do I do if I retire in 2008 happens again?

What do I do if I retire in the market drops 30, 40 plus percent and it takes five years to

recover? This is often the biggest fear behind something called sequence of return risk.

Sequence of return risk says it doesn't matter what your average return is over the course

of your retirement. If you're 65 and you're living until 90,

I'm not so concerned about the average return your portfolio is going to achieve over that time.

I'm more concerned about the sequence in which you receive those returns. If the first few years

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