Jack Bogle: How to Deal with Sequence of Return Risk in Investments
Channel: Finance Jane
Date: 2022-01-04

John Clifton "Jack" Bogle (May 8, 1929 – January 16, 2019) was an American investor, business magnate, and philanthropist. He was the founder and chief executive of The Vanguard Group, and is credited with creating the first index fund. 

An avid investor and money manager himself, he preached investment over speculation, long-term patience over short-term action, and reducing broker fees as much as possible. 

The ideal investment vehicle for Bogle was a low-cost index fund held over a period of a lifetime with dividends reinvested and purchased with dollar cost averaging.

In this video he talked about what investors can do about the sequence of return risk. 

Also called sequence risk, this is the risk that comes from the order in which your investment returns occur. To put it another way, sequence of return risk is the risk that market declines in the early years of retirement, paired with ongoing withdrawals, could significantly reduce the longevity of a portfolio.

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Recommended Reads:

The Intelligent Investor by Benjamin Graham- https://amzn.to/3E5wcJf

The Warren Buffett Way by Robert G. Hagstrom- https://amzn.to/3yCYVUQ

The Snowball: Warren Buffett and the Business of Life- https://amzn.to/3Fnw5dq

The Essays of Warren Buffett: Lessons for Corporate America- https://amzn.to/3sjSghk

The Little Book of Common Sense Investing by John Bogle- https://amzn.to/3so3W2z

One Up On Wall Street by Peter Lynch- https://amzn.to/3p8ovO9

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Principles: Life and Work by Ray Dalio- https://amzn.to/3ebzdgw

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Attribution: “Bogleheads® Conference 2018 - John Bogle Q & A” by Bogleheads. Shared via a Creative Commons CC-BY license. https://youtu.be/eoNIaI7sZls

Warning: This video is to show you John Bogle’s view about the sequence of return risk. Please do your research before doing any investment. A good balance between return and risk is the key to investment success.

#sequencerisk #jackbogle