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Retirement & Income Planning

Financial Planning Friday’s – What’s Your Cushion

This Financial Planning Fridays teaser (#23) introduces the volatility cushion: how many years a retiree's plan can be funded from income and bonds before tapping stocks. The full episode explains why this buffer is a key retirement risk measure that lets the equity portion of a portfolio recover after a downturn.

Jerry DavidseFinancial Planning Fridays

This Financial Planning Fridays teaser (#23) introduces the volatility cushion: how many years a retiree's plan can be funded from income and bonds before tapping stocks. The full episode explains why this buffer is a key retirement risk measure that lets the equity portion of a portfolio recover after a downturn.

Key takeaways

  • Your cushion is the number of years you can spend without selling stocks.
  • A strong cushion protects retirees from selling equities at a loss.
  • The buffer gives stocks time to recover after a market decline.
  • This is a companion teaser to the full Financial Planning Fridays #23 episode.

Financial Planning Friday’s #23 – A Cushion for Market Volatility

More on Retirement & Income PlanningInvesting & Markets

Written by

Jerry Davidse

Chief Executive Officer · CFP®

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