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The Hidden Risk: Sequence of Returns in Cash Flow Negative Plans (PDF)
First Actuarial Consulting Team [FACT] Link to more items from this source
Oct. 7, 2025

"When benefit payments regularly surpass incoming contributions, trustees encounter a structural issue that may affect a plan's funded status. This paper explores the mechanics of sequence of returns risk -- a phenomenon where poor investment performance early in the decumulation phase can trigger forced asset sales at depressed prices, compounding losses and accelerating funding deterioration."  MORE >>

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