Tags: retirement planning, saving, personal finance
I just read a very interesting post on Jonathan's MyMoneyBlog. A retirement planning simulator at Ameritrade told him all he needed to meet his goals was $75k. Of course this omitted inflation, investment fees, changes in taxation, etc.... Jonathan took the information with a bit of skepticism, especially when he need to earn returns in excess of 12% every year for 30 years.
I wonder how many mutual funds have done that well?
Probably not many.
I'd check out the discussion and the comments, it's pretty interesting.
Regards,
Making Our Way
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2 comments:
according to Ben Stein's "yes, you can time the market", the stock market has returned on average 8% over a 30 year period. less for shorter periods.
emptyspaces,
8% is a reasonable benchmark. That's what I'm using preretirement. After retirement, I expect a portion of my funds to be invested in bonds and interest earning investments, pulling down the overall growth, but preserving the capital base, hence 4%.
Thanks for the comments.
Regards,
Making Our Way
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