Two people can experience identical average returns and end up in very different places, purely because of the order the years arrived. A large fall early — especially while withdrawing money — does damage a later fall of the same size would not. Averages hide this completely.
Check yourself
Sequence risk is the danger that…
Average returns are too low
Bad years arrive at the worst time, especially early or while withdrawing correct
Fees rise over time
The average return can be fine and the outcome still poor. Order matters when money is flowing in or out.
Learn this properly
This term has a full interactive lesson in Wick — the chart, the pattern to tap,
and a live practice terminal to try it on. Free to start.