Tips For the Last 10 Years of Work
Tips For the Last 10 Years of Work
From the article:
Time was when you would use simple average stock-and bond-market returns to calculate your investment goals. Stocks have risen on average 12.5 percent since July 1932 and bonds have gained on average 5.5 percent, says Ibbotson Associates. But in reality, stocks behave much differently, rising 54 percent in their best year and falling 35 percent in their worst year.
That's why most experts, including Susan Hirshman, managing director JPMorgan Fleming Asset Management in New York, recommend using a "Monte Carlo simulation" to predict whether you will build a sufficient nest egg.
From the article:
Time was when you would use simple average stock-and bond-market returns to calculate your investment goals. Stocks have risen on average 12.5 percent since July 1932 and bonds have gained on average 5.5 percent, says Ibbotson Associates. But in reality, stocks behave much differently, rising 54 percent in their best year and falling 35 percent in their worst year.
That's why most experts, including Susan Hirshman, managing director JPMorgan Fleming Asset Management in New York, recommend using a "Monte Carlo simulation" to predict whether you will build a sufficient nest egg.
posted by Roger Grinde at 7:18 AM
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