Investment risks Flashcards
1
Q
What actions can be taken to mitigate sequencing risk?
A
- Reduce initial withdrawal level
- Change frequency of withdrawals
- Delay retirement age
- Reduce equity holdings
- Increase fixed interest holdings
- Increase cash
- Take natural income
- Annuitise
2
Q
Identify the risks associated with corporate bonds.
A
- Interest rate
- Reinvestment
- Default
- Inflation
- Political
3
Q
Identify the risks associated with high income alternative investments.
A
- Income
- Unregulated
- Accessibility
- Liquidity
- Valuation
- Correlation
- Interest rate
