Sentences with phrase «sequence of asset returns»

The first is to lock in retirement income prior to retirement in order to avoid the possibility that a poor sequence of asset returns will jeopardize retirement income sustainability.

Based on 50,000 ages of death for the second member of the couple, as well as 50,000 sequences of asset returns through each age of death, we were able to investigate the present value for the cost of retirement based on different asset allocation and product allocation strategies.

Not exact matches

All that matters is the average cumulative compound return of your asset no matter what's the sequence of the returns.

They use both in - sequence historical asset returns and Monte Carlo simulations (random draws with replacement from the historical annual returns of each portfolio).

So it's a complex mix of tax management, asset allocation for growth, risk management (including sequence of returns), and some relevant psychological considerations.

This addresses the so - called «sequence of returns» risk with using invested assets to generate retirement income.

Using block bootstrapping selects a random sequence of annual returns and better captures the serial correlation and mean reversion of assets.

It can be used to coordinate with the investment portfolio, that if markets are down, rather than selling your assets at a loss and triggering that sequence of returns risk, you could instead spend money from the reverse mortgage line of credit.

Asset allocation affects a number of retirement plan factors including your portfolio's exposure to a market crash, your long term expected portfolio return and volatility, and your sustainable withdrawal rate (and sequence of return risk).

This sequence of return risk means that a bear market near retirement increases the risk of outliving assets far more than a bear market later in retirement.