Understanding that silent portfolio killer: Sequence of return risk

The dangers of sequence of return risk might come as a shock to cashflow model evangelists

clock

The dangers of sequence of return risk might come as a shock to cashflow model evangelists, writes Abraham Okusanya...

What is the world's deadliest animal when it comes to killing humans? Most people intuitively think of beasts with large teeth and fearsome reputations, such as the Lion, Wolf or the oft-cited Hippo. In reality though, it is the tiny mosquito that does the most damage. It causes more deaths than virtually any other animal; responsible for about 725,000 human deaths annually, only human beings themselves come close, with a tally of about 425,000. And what of man's supposedly best friend? Dogs kill about 25,000 people each year, almost exclusively because of rabies. Now compare these...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

PA Asks: Has demand for IHT mitigation risen at your firm?

PA Asks: Has demand for IHT mitigation risen at your firm?

This week’s poll also looks at the role of MPS and paperless operations

Professional Adviser
clock 25 March 2024 • 1 min read
FCA urged to prioritise a 'common sense' approach

FCA urged to prioritise a 'common sense' approach

Last week’s PA Asks poll highlights industry’s thoughts on the FCA

Sahar Nazir
clock 25 March 2024 • 2 min read
Advisers overlooking younger clients over asset value bias

Advisers overlooking younger clients over asset value bias

'Young people need to have access to trusted advice'

Sahar Nazir
clock 22 March 2024 • 1 min read