Luck, Timing & Investing

From the Archives of TGIF 2 Minutes….

There is an element of luck involved in investing. A specific term for this luck is, “Sequence of Returns.” What on earth is that? Answer: it is a risk. And it may just be the most important concept in the world if you ever wish to spend your savings – and have them last as long as you need.

green plants on black soil
There is an element of luck involved in investing. A specific term for this luck is, “Sequence of Returns.” 

Continue reading “Luck, Timing & Investing”

Sequence of Returns: The Luck Factor

Despite all of the calculations involved in investing, there is still an element of luck involved. A specific term for this luck is, “Sequence of Returns.” What on earth is that? Answer: it is a risk. And it may just be the most important concept in the world if you ever wish to spend your savings – and have them last as long as you need.

shallow focus photography of four leaf clover

The topic became relevant recently when a client asked me to assist in defining what their “concerns” should be for the long-term, now that they had accumulated a decent amount of savings and investments. The desire was to continue to accumulate savings but, more important, have the monies last at least long enough to see their plan to fruition for themselves and their kids. Continue reading “Sequence of Returns: The Luck Factor”