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 some idea on basic portfolio design.
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Posted on 10-19-06 2:17 PM     Reply [Subscribe]
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Posted on 10-19-06 2:27 PM     Reply [Subscribe]
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Example

Client - 25
Retirement age - 65
Yr. To Invest Till You start withdrawing money - 40
Vehicle Used - Roth IRA
Yearly Contribution- 4000
Investment Proflie - V. Aggresive.


Total Principle invested - 160000

10% chances of your asset growing to 4,232,651.
50% chances of your asset grwoing to 1,654,429.
90% chances of your asset growing to 675,303.

NO Income Tax upon withdrawal.

Save Early, Retire Rich.

Inflation not taken into calculation.
 
Posted on 10-19-06 2:37 PM     Reply [Subscribe]
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lil more in detail.

Required income in retirment - 100000 ( todays dollar)
with inflation that is equivalent to - 326203

retirement age - 65
life expectency - 85
living in retirment ment - 20 yrs

The required Nest Egg - 1521230
In 2046- equivalent to 4962339


To save 1521230, in todays dollar, you need to gain an avg of 13.39% with 4000 a yr.
Starting today, the chances of that happenning 55%, over the course of 40 yrs.

Save Early , Retire Rich.

4000 A YR = approx 10 dollars a day.
 


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