The Defined Duration® Frontier
Every asset carries sequence risk over some time horizon. We call that horizon its Defined Duration®, which is roughly how long you might need to wait to recover from a bad drawdown in real terms. Plug in a portfolio and the tool maps your weighted Defined Duration, a sequence risk score and how your money is spread across time. The goal isn't zero risk. It's making sure the money you need soon isn't sitting in something that could take a decade to come back.
Portfolio Builder
Allocation: 0%We like every bucket to hold at least 10% so no time horizon is left uncovered.
How the score works
The score runs from 1 to 5. It starts with the portfolio's weighted max real drawdown and then gives credit for near-term cushion. A portfolio with 40% or more in the 0 to 7 year buckets can fund several years of spending without selling risk assets into a decline, so its drawdown counts for half as much. Drawdown and Defined Duration figures for each asset are illustrative estimates, not forecasts.
Frontier and Recovery Path
Shaded bands show the four time buckets. The dashed line marks your portfolio's weighted Defined Duration. Tap any point for details.
For educational purposes only. Asset drawdowns and Defined Durations are illustrative estimates and not guarantees of future results. This isn't individualized investment advice.