TY - JOUR T1 - What Investment Risk Means to You, Illustrated <em>Strategic Asset Allocation, the Budget Constraint, and the Volatility of Spending During Retirement</em> JF - The Journal of Retirement DO - 10.3905/jor.2018.1.041 SP - jor.2018.1.041 AU - M. Barton Waring AU - Laurence B. Siegel Y1 - 2018/10/05 UR - https://pm-research.com/content/early/2018/10/05/jor.2018.1.041.abstract N2 - 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. ER -