Student Work

Explorations of Sequence Risk

Public

Downloadable Content

open in viewer

The accumulation phase of retirement planning is when an individual accrues assets that would fund their retirement. The decumulation phase begins when they retire. Our work is based on parts of Clare, Seaton, Smith, and Thomas's paper on sequence risk. Sequence risk is the uncertainty created by the order of a specific set of returns. We simulated portfolios' accumulation and decumulation phases to illustrate how different sequences of the same set of returns result in different portfolio values. By creating 100,000 permutations for each phase, we analyzed each scenario's ending values for accumulation and annual withdrawal rates for decumulation.

  • This report represents the work of one or more WPI undergraduate students submitted to the faculty as evidence of completion of a degree requirement. WPI routinely publishes these reports on its website without editorial or peer review.
Creator
Publisher
Identifier
  • E-project-042419-203432
Advisor
Year
  • 2019
Date created
  • 2019-04-24
Resource type
Major
Rights statement

Relations

In Collection:

Items

Items

Permanent link to this page: https://digital.wpi.edu/show/w95052921