07.12.2021
Higher yielding assets tend to increase drawdown risk
In a world where yields from investments are low, there is a challenge to retirees to capture investments that generate higher levels of yield to meet their goals for expenditure.
In a webinar with Vanguard, they highlighted the problem of investing in higher-yielding assets. In the event of market fluctuations, investing in these types of assets increases the downside risk. Of course, this is not an issue if you understand the extra risk you are taking..but it can be a surprise if you didn’t know. Do you understand the risks you are taking when you seek yield?
