Sequence of returns

The order of good and bad years matters, not only their average. A fall just after retiring does more harm than the same fall ten years later, because withdrawals lock the losses in.

L3Level 3 of 3 · no narrower concepts

What it rests on, and what rests on it

Rests on it

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Where it is used

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In the model

  • The glossary's “Sequence-of-returns risk”

Sources

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