Stress Testing Your Retirement Plan: “How Big is My Cushion?”

By Advisor's Edge

Respected market theoretician Jim Otar walks through how to stress test client portfolios.

 

He reviews a variety of Black Swan scenarios, including sudden and permanent loss of assets; the need to increase the income taken from the portfolio; future inflation higher than historically experienced; living longer than planned for; future equity returns lower than historically experienced; and future conventional bond yields lower than historically experienced.