%0 Journal Article %A M. Barton Waring %A Laurence B. Siegel %T What Investment Risk Means to You, Illustrated Strategic Asset Allocation, the Budget Constraint, and the Volatility of Spending During Retirement %D 2018 %R 10.3905/jor.2018.1.041 %J The Journal of Retirement %P jor.2018.1.041 %X In our experience, many investment professionals don’t articulate risk well to clients. This research uniquely and graphically reveals the nature of strategic asset allocation investment risk not only for single-period investors, but also for multi-period investors such as those whose savings are held for retirement. Using Monte Carlo simulations, we evaluate and picture the nature of that multi-period consumption risk with spending rules that are subject to a budget constraint and those that aren’t (such as the 4% rule). Risk in a multi-period context means that realized spending may increase with greater SAA risk, but it may instead be worse. %U https://jor.pm-research.com/content/iijretire/early/2018/10/05/jor.2018.1.041.full.pdf