Bad years are bad news - accounting for sequence risk
Wade D. Pfau
An unlucky sequence of bad investment years at the wrong time can derail retirement savings and even overwhelm decades of decent average returns.
Called "sequence risk," it is the possibility that a bad break, a poor run of years or an unusually poor year can have an outsize impact on savings outcomes, even if savers are diligent and consistent.
Saft, James, "Bad years are bad news - accounting for sequence risk" (2015). In the News. 507.