The link that follows is to an article about a recent report by Fidelity about 5 key risks to retirement income. What I found interesting is that not one of the referenced risks is "portfolio value volatility"; and yet, our industry has broadly defined "risk" as meaning "portfolio value volatility" such that a "low volatility portfolio" is considered "low risk" and a "high volatility portfolio" is considered "high risk". If one thinks about retirement income and "longevity risk" and "inflation risk", investing in a "low volatility portfolio" may actually be "high risk". Could the overwhelming industry focus on "volatility" actually be creating greater long-term risk for clients?
http://www.advisor.ca/investments/market-insights/five-key-risks-to-retirement-income-%e2%80%93-part-1-53675
