Category: Sequence Risk (Page 1 of 2)
The perfect withdrawal rate in a retirement portfolio contains more risk than meets the eye. The order of returns is extremely important.
We find that a long or prolonged drawdowns early in an investor’s retirement can dramatically increase the probability of failure.
Investors have traditionally utilized a stock/bond glide path in order to control for sequence risk. Where does trend following fit in?
Failure to meet your financial objectives can take one of two forms: fast failure and slow failure. Failing fast involves suffering large losses at the wrong time as the result of taking too much risk. Failing slow involves achieving insufficient growth due to taking too little risk.
Dynamic Spending in Retirement Monte Carlo
By Nathan Faber
On July 15, 2019