Sequence of Returns: Difference in Impact on Lump Sum Investment vs. Annual Contribution vs. Distribution Portfolios
Oct 17, 2019
By Craig L. Israelsen, PhD
The sequence of returns of an investment matter—but not in every situation. It depends how the money is being invested: lump sum or annual contribution. And, if money is being withdrawn from the portfolio, the sequence of returns is quite a big deal. This analysis of portfolio performance over 20 years shows the varying impact.