Sequencing risk : the worst returns in their worst order

Basu, Anup K., Doran, Brett M., & Drew, Michael E. (2013) Sequencing risk : the worst returns in their worst order. JASSA, 4, pp. 7-13.

[img] Accepted Version (PDF 345kB)
Administrators only | Request a copy from author

View at publisher


For the first of the baby boomers turning 65 years of age, after a decade littered with financial shocks ( bubble, sub-prime, global financial crisis, sovereign debt), sequencing risk can represent a significant threat to their retirement nest eggs. This paper takes an outcomeoriented approach to the problem, to provide practical insights into how sequencing risk works and the critical dependency of retirement outcomes on sequencing risk. Our analysis challenges the conventional wisdom that it is the accumulated average of investment returns that matter. We show, instead, that it is the realised sequence of returns which largely determines the sustainability of retirement incomes.

Impact and interest:

0 citations in Scopus
Search Google Scholar™

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

ID Code: 68437
Item Type: Journal Article
Refereed: Yes
Additional URLs:
Keywords: Sequencing risk, Asset allocation, Retirement
ISSN: 0313-5934
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Copyright Owner: Copyright 2013 Please consult the authors
Deposited On: 13 Mar 2014 05:33
Last Modified: 17 Mar 2014 16:08

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page