The key part of what you wrote is “IF you hold 2-3 years of expenses in cash”.
That is, in and of itself, diversification to minimize SORR. And yes, this is especially important at the time of retirement.
The best way to plan one’s portfolio is to stress test it for randomized returns given bounded volatility assumptions (using a Gaussian box-muller transform).
The key part of what you wrote is “IF you hold 2-3 years of expenses in cash”.
That is, in and of itself, diversification to minimize SORR. And yes, this is especially important at the time of retirement.
The best way to plan one’s portfolio is to stress test it for randomized returns given bounded volatility assumptions (using a Gaussian box-muller transform).