Investment returns typically vary year by year, sometimes the portfolio goes down in value and sometimes it increases but the long term growth is seldom a straight line. This is not as important if you invest a lump sum or have regular payments going into your investment or pension, but, if you are taking withdrawals, early negative returns can have a devastating effect on your portfolio.  For this reason we suggest that anyone taking withdrawals discuss their income requirements and strategy to make sure buffers are built into their plan should the sequence of investment returns not be in their favour.

First published on May 18th, 2021

The information provided above is believed to be correct at the time of publication and is provided for information purposes only, it does not constitute advice. Any reference to interest rates or growth rates are examples only and are for illustrative purposes only. You should seek independent financial advice before making any decisions about your finances and financial products. We accept no liability for loss as a result of any action taken based on the information on this page where appropriate independent financial advice is not taken from Lakeside FS Ltd.