While You're Enjoying the Market's Winning Streak, Don't Forget to Protect Your Gains

The market has seen three consecutive years of double-digit gains, benefiting many investors, especially retirees and near-retirees. However, recency bias may cause overconfidence, overlooking potential risks. As retirement nears, risk capacity decreases even if risk tolerance remains high. Protecting assets becomes crucial due to sequence of returns risk, especially in the "fragile decade" around retirement. Balancing growth and risk reduction is essential to safeguard retirement funds.