Your average return is great, but the sequence of those returns can really affect the cash you're left at the end of the day.
Sequence of Returns does matter!!
By Jason A. DeJean
FCSI®, PFP®, CFP®, CPCA®, EPC®
Above you will see a chart that goes over the S&P 500 returns. The S&P500 is the group of the 500 largest companies in the USA market.
They are tracked, and the ‘index’ shows a portion of each company. It is a proxy for how investments perform over time.
This chart shows returns from 2000-2011. With focus on the 2000, 2001 and 2002 which were negative.
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