Chaos theory: How to manage sequencing risk in a retirement portfolio

How to manage sequencing risk in a retirement portfolio

clock • 7 min read

Abraham Okusanya caused quite a stir among advisers after highlighting the dangers of sequence of return risk. In a follow-up, he examines potential solutions...

My previous article looking at the dangers of sequence of return risk appears to have struck a chord with Professional Adviser readers: it prompted quite the response from many planners wanting to know the issue can be addressed. The truth is there is no silver bullet for removing this risk, but all is not lost. The latest research in the ‘safe withdrawal rate' (SWR) offers some clues on how to mitigate against it...

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