Comments on makingourway: How 1% improvement in return makes our lifetime sa...

Sorry, again ick, ick, ick Go research Monte carlo...

2007-01-04T00:18:00.000-06:00

Sorry, again ick, ick, ick Go research Monte carlo simulation. Quikens technology is bad, bad, bad. It doesn't really calculate risk and reward. It just figures a static, fixed rate of return. You need life probabilities not fake end of plan numbers. My Monte carlo simulation shows my wife dieing with eitjer 2 billion bucks or owing a cool 5 mil at death. That's basic quicken. What I do get is a 95% probability that no matter what, we'll be fine and live on a nice $300K after tax for ever. Ditch Quicken speak it is very 80's. Should you have any concerns I can give a few web sites to start on. Good luck...

Moom, thanks for sharing.I'm a bit confused - why ...

2007-01-03T00:46:00.000-06:00

Moom, thanks for sharing.
I'm a bit confused - why does she have soooo much cash. Wouldn't she do better with a bond ladder? Why would she keep more than 2 years expenses as cash?
Also if her basic expenses are covered by her pension, why not invest 75% of her assets in stocks - maybe dividend payors? She could do very well with a diversified passive index portfolio. This would preserve her legacy for future generations.
Regards,
m

Check:http://www.networthiq.com/people/MoominmamaT...

2007-01-01T13:07:00.000-06:00

Check:

http://www.networthiq.com/people/Moominmama

To see how my Mom's assets are invested. Still too much cash IMO. After any significant market correction we'll add substantially to the equity side.

But she hardly spends any money from this and pretty much lives on the government etc. pensions she receives.