RETP057.doc
This article explains what sequencing risk is and how it can affect retirement savings. It begins with an example to make it easier to understand.
As financial advisers, we talk a lot about risk, so what is sequencing risk? Let’s begin with an example.
Wayne and Chris each contribute $20,000 per year to their superannuation funds for 10 years...
This simple example demonstrates that it isn’t just the average of annual returns that matter; of equal importance is the sequence in which those returns occur. Not surprisingly this is called sequencing risk.
To download and use this content, make sure you're logged in to the Library then hit the Download button.
No login details? Register here for full access.
Are you a qualified financial planner with hands-on experience and a passion for writing?
Yes? Click here to learn more about joining our writing team