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...

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 Economics / Markets

Why investors 'can't outrun' slow-moving demographics

Why investors 'can't outrun' slow-moving demographics

'Demographic change is a key megatrend'

Darius McDermott
clock 07 March 2024 • 5 min read
Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

British ISA, Office for Budget Responsibility, tax cuts

Valeria Martinez
clock 07 March 2024 • 4 min read
Spring Budget 24: Chancellor unveils long-term UK growth plan

Spring Budget 24: Chancellor unveils long-term UK growth plan

Includes British ISA launch and further NI cut

clock 06 March 2024 • 1 min read