New risk measure helps secure long-term financial projections and retirement plans.
The article introduces a new way to measure risk in long-term financial projections called "expectation risk". This measure helps to understand the short-term risks that could affect long-term outcomes like portfolio value and retirement income. By looking at short-term distributions of long-term expectations, practitioners can estimate the adjustments needed to reach their financial goals. This approach provides more insight than traditional risk measures and can help individuals make better decisions to secure their financial future.