Retirement, Risk, and Return
Steve Condon July 7, 2009
In the face of a stressful market environment that has led many investors to question their commitment to stocks, it is critical to rationally consider the risk trade-off between dampening portfolio volatility and maintaining the long-term purchasing power of your assets.
In this seven-minute video, David Booth, founder and CEO of Dimensional Fund Advisors, discusses the importance of balancing volatility risk and purchasing power risk when investing for retirement. He examines various portfolio combinations of stocks and Treasury Bills through the historical lens of inflation-adjusted real returns to illustrate how investors may balance both types of risk.
