Target Date Investing: A Different Perspective on Sequence-of-Returns Risk Around Retirement
Investors may have different retirement objectives, resulting in different risk priorities. One factor that often receives significant attention is sequence-of-returns (SoR) risk – the concern that portfolio losses around retirement could impact the ability to support postretirement income needs. This analysis evaluates the impact of SoR risk on target date investing.
T. Rowe Price is a global investment management firm providing mutual funds, retirement plans, advisory services, and customized investment solutions. Known for rigorous research and long-term, disciplined investing strategies, the firm helps individuals, financial institutions, and intermediaries achieve their financial goals.