Taking Risks That Make Sense
More risk does not mean more return, but more return follows more risk. Which risks make sense for you?
Sequence Risk vs. Investment Risk
A lot has already been written about the sequence of returns risk confronting retirees. But the full implications of sequence risk have not been completely internalized. Retirees become more vulnerable to investment volatility, because as they withdraw from their portfolio they may find themselves locking in investment losses. It’s the opposite effect from dollar cost averaging.
Risk and Retirement Finances
In my last blog post, I described a recent article by Paula Hogan and Rick Miller about different approaches to financial planning. I’d to come back to an issue from that article related to risk management for retirement finances. They make a clear distinction between two risk concepts: Risk tolerance: comfort in dealing with portfolio […]
