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Explorations of Sequence Risk Public

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The accumulation phase of retirement planning is when an individual accrues assets that would fund their retirement. The decumulation phase begins when they retire. Our work is based on parts of Clare, Seaton, Smith, and Thomas's paper on sequence risk. Sequence risk is the uncertainty created by the order of a specific set of returns. We simulated portfolios' accumulation and decumulation phases to illustrate how different sequences of the same set of returns result in different portfolio values. By creating 100,000 permutations for each phase, we analyzed each scenario's ending values for accumulation and annual withdrawal rates for decumulation.

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  • E-project-042419-203432
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  • 2019
Date created
  • 2019-04-24
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Permanent link to this page: https://digital.wpi.edu/show/w95052921