The Sequence of Returns
A look at how variable rates of return do (and do not) impact investors over time. Provided by UPAL What exactly is the “sequence of returns”? The phrase simply describes the yearly variation in an investment portfolio’s rate of return. Across 20 or 30 years of saving and investing for the future, what kind of impact do these deviations from the average return have on a portfolio’s final value? The answer: no impact at all. Once an investor retires, however, these ups and downs can have a major effect on portfolio value – and retirement income. During the accumulation phase,
July 30, 2018
