Thursday, March 23, 2006

Retirement simulators

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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.


Making Our Way


Adventures In Money Making said...

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.

makingourway said...


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.


Making Our Way