Understanding and managing 'sequence risk'

In this issue, we explore how the sequence of portfolio returns can significantly impact financial outcomes for investors making regular withdrawals, such as retirees. We highlight the risks associated with withdrawing funds during market downturns and provide practical solutions, including robust financial planning, stress-testing scenarios, and portfolio diversification. By adopting these strategies and engaging in regular progress meetings, investors can help to mitigate sequence risk in their financial plan.

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