Advisors who have 'de-risked' ageing clients' portfolios by reducing the asset allocation to equities have been costing their clients money!
That's the surprise finding from research by Paul Resnik into sequence risk. The data told him that, over the past 40 years, people would have had more money available to them in retirement if they had maintained equity exposures of up to 80% of the portfolio.
Paul says the industry is overstating sequence risk to clients, when they should be more focused on achieving a sustainable level of spending and appropriate draw-down amount.