Understanding that silent portfolio killer: Sequence of return risk

The dangers of sequence of return risk might come as a shock to cashflow model evangelists

clock

The dangers of sequence of return risk might come as a shock to cashflow model evangelists, writes Abraham Okusanya...

What is the world's deadliest animal when it comes to killing humans? Most people intuitively think of beasts with large teeth and fearsome reputations, such as the Lion, Wolf or the oft-cited Hippo. In reality though, it is the tiny mosquito that does the most damage. It causes more deaths than virtually any other animal; responsible for about 725,000 human deaths annually, only human beings themselves come close, with a tally of about 425,000. And what of man's supposedly best friend? Dogs kill about 25,000 people each year, almost exclusively because of rabies. Now compare these...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Advisers concerned clients are being misled by AI - research

Advisers concerned clients are being misled by AI - research

More than two thirds flag concerns about clients turning to AI for financial advice

Sophia Panayi
clock 04 June 2026 • 1 min read
Standing out from the crowd: WIFA entry tips from judge Gillian Hepburn

Standing out from the crowd: WIFA entry tips from judge Gillian Hepburn

'The number of outstanding entries always makes judging challenging'

Gillian Hepburn
clock 04 June 2026 • 4 min read
Advisers report under 50s make up growing chunk of client banks

Advisers report under 50s make up growing chunk of client banks

Under 40s make up almost a third, FE Fundinfo research finds

Sophia Panayi
clock 02 June 2026 • 2 min read