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What Makes Sequence of Returns Risk So Dangerous

FYI: Ron Surz uses a thought experiment to clarify sequence of returns risk and its perilous implications for target-date investors.
Regards,
Ted
http://www.thinkadvisor.com/2015/06/04/what-makes-sequence-of-returns-risk-so-dangerous?t=mutual-funds&page_all=1

Comments

  • edited June 2015
    Thanks Ted! This article has a great quote for those Monte Carlo simulation fans:

    “If I run thousands of simulations, risk does get rewarded. But I don’t get to go through life a thousand times,” he quips about the risk to an individual retiree caught in a bad sequence of returns.
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