One challenge that confronts retirees and their advisors is how to prevent having to sell their hard-earned retirement assets at the wrong time. We have all heard the age-old investment adage “buy low and sell high,” which tells us to buy assets when they are out of favor, but to time the disposition of the assets when the markets are in your favor. Yet we also know the adage “The market can stay irrational longer than you can remain solvent.” A cash flow reserve (CFR) ladder can mitigate the challenge of selling in volatile markets.
