Gyroscopic Investing

Posted: **Sun Mar 23, 2014 12:54 pm**

Could someone explain this concept to me please?
FISH

Posted: **Sun Mar 23, 2014 1:00 pm**

Here is a simple explanation from wikipedia.

Actually, the first sentence is enough for me...

Posted: **Sun Mar 23, 2014 1:05 pm**

Assuming you are referring to the term as it applies to the PP, this may be the period in your life when you will be living off your accumulated wealth. It follows the accumulation phase where you will be adding money to your PP. For most people the more common term is "retirement." When you are in draw down you are withdrawing money from your PP to live on. For many people the amount taken out may be equal to, or even slightly exceed anticipated gains and so the PP may slowly shrink over time.

See above for other possible definitions.

Posted: **Sun Mar 23, 2014 1:48 pm**

Got it, thank you

Posted: **Sun Mar 23, 2014 2:09 pm**

Ad Orientem wrote: Assuming you are referring to the term as it applies to the PP, this may be the period in your life when you will be living off your accumulated wealth. It follows the accumulation phase where you will be adding money to your PP. For most people the more common term is "retirement." When you are in draw down you are withdrawing money from your PP to live on. For many people the amount taken out may be equal to, or even slightly exceed anticipated gains and so the PP may slowly shrink over time.

See above for other possible definitions.

Actually I seem to recall the term being often used here in accordance with the strict wiki definition, as in "the PP has experienced significant drawdowns in the past" (the first sentence of the wiki I mean, I have no clue what the equations mean).

But I have also heard it used as you describe, simply withdrawing funds during retirement.

So I guess you have to consider the context.

Posted: **Sun Apr 13, 2014 3:02 pm**

During the accumulation phase, "max draw down" refers to the maximum loss a portfolio or other investment might suffer over some period of time. Investopedia explains it as follows:

Definition of 'Drawdown'

The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted as the percentage between the peak and the trough.

Investopedia explains 'Drawdown'

A drawdown is measured from the time a retrenchment begins to when a new high is reached. This method is used because a valley can't be measured until a new high occurs. Once the new high is reached, the percentage change from the old high to the smallest trough is recorded.

Drawdowns help determine an investment's financial risk. Both the Calmar and Sterling ratios use this metric to compare a security's possible reward to its risk.

Source: http://www.investopedia.com/terms/d/drawdown.asp

Once you're in retirement (or whenever you begin withdrawing funds), you're said to be in the "draw down" phase, which is simply another way of saying that you're now withdrawing money, rather than contributing money.

Gyroscopic Investing

What does Draw down mean exactly?

What does Draw down mean exactly?

Re: What does Draw down mean exactly?

Re: What does Draw down mean exactly?

Re: What does Draw down mean exactly?

Re: What does Draw down mean exactly?

Re: What does Draw down mean exactly?