This podcast discusses FinaMetrica’s non-intuitive findings from research into sequence risk. Essentially, over the past 40-plus years investors would have had more money available to them in retirement if they had maintained higher equity exposures in their retirement portfolio, except in 5% of cases where there is no difference in outcomes.
The data shows that the industry is overstating sequence risk to clients and de-risking portfolios, when they should be focused on choosing a portfolio consistent with their risk tolerance and taking a sustainable level of regular withdrawal.
http://www.riskprofiling.com/blog/October-2015/sequenceriskbeatup
