Helping Clients Understand the ‘Risk Zone’ and Sequence of Return Risk

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Helping Clients Understand 4 Pillars of Smart Investing

In this excerpt of his ebook advising baby boomers on the perils of simply maintaining a 60/40 portfolio, Ron Surz gives a clear, client-facing explanation of the value of asset allocation and three other keys to investment success.

Sequence of Returns in a Portfolio: When It Matters

The order in which returns occur matters in certain circumstances and not in others. But when it does matter, it really matters. A comparison of three common investing scenarios, using historic return data, demonstrates how to tilt a portfolio towards a more favorable level of risk and return.

Visualizing Sequence of Returns Risk: A 3-D Map

See in 3-D how an account starting with a million dollars would have fared over rolling 25-year periods from 1926 to present—as well as annual withdrawal fluctuation over those years. Plus a comparison of the best 25-year period and the worst 25-year period for investors.