Investing & Markets

Own assets that compound

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Novice

Note. Education, not financial advice. Past performance doesn't guarantee future returns. For real money decisions, talk to a SEBI-registered advisor whose incentives don't depend on selling you a product.

Concept 14 of 21

framework

Sequence of returns risk

(Sequence of Returns Risk (SRR))

Bad years early in retirement hurt far more than the same bad years later.

Definition

The risk that the order of investment returns in early retirement deplete capital faster than the same returns in a different order would have.

Step 1

Predict first

In one or two sentences, what do you think this concept means? Wrong is fine; the small struggle is what makes the answer stick.