Faculty Publications

Title

Why Chasing Returns Is Especially Dangerous For Retirees

Document Type

Article

Publication Date

4-20-2017

Abstract

Generally, investors tend to increase stock allocations near a market peak and then panic and decrease allocations after a market drop. Vanguard has estimated that the behavioral coaching provided by financial advisors to help their retirees stick with a financial plan could add 1.5% of additional returns for an investor per year on average over time.