Flirting with Models

The Research Library of Newfound Research

Category: Sequence Risk (Page 2 of 2)

You Are Not a Monte-Carlo Simulation

Our lives are not a monte-carlo simulation. Because we all live in a multi-period world where we have a single investment portfolio that compounds over time, managing risk can help us maximize our long-term growth rate even if it seems foolish in hindsight.

Should You Dollar-Cost Average?

Dollar-cost averaging (DCA) is often touted as superior to lump sum investing, but there are many scenarios where DCA may be inferior. The market environment and investor behavior both play large roles in the decision of which route to take.

Addressing Low Return Forecasts in Retirement with Tactical Allocation

Low return forecasts make risk management crucial. Tactical strategies have been effective in the past, and moderate allocations can make a big difference.

The Butterfly Effect in Retirement Planning

Examining the significant impact of changes in assumptions, including spending and return assumptions, on retirement planning analysis.

Impact of High Equity Valuations on Safe Retirement Withdrawal Rates

High valuations suggest that retirement withdrawal rates that were once safe may now deliver success rates that are no better than a coin flip

Page 2 of 2