Can You Control the Uncontrollable and Forget the Rest?
In last week’s video, we explained why it’s often better to manage the amount of risk you take in your portfolio, rather than trying to achieve a high rate of return. We showed how two sets of hypothetical portfolios, both with the exact same investments over a 10-year period of time, could have entirely different outcomes — simply by changing the date that a retiree began taking withdrawals. In this week’s edition of Lucia Capital Group Weekly, our “Professor” Rick Plum takes that same hypothetical scenario and expands the time horizon by another ten years. How did these two (imaginary) identical portfolios fare after a 20-year time horizon? You may be surprised.