I did the calculations longhand using year by year returns. The portfolio value I get on Dec 30 2010 is 47.4% of the initial portfolio value of $100 (in US$ of 2000).So for an initial port of $1M. After 11 years of 4% AWR using a 3% annual inflation rate, we'd have $474,000 today (in year 2000 US dollars).Somehow the first calculation is the accurate one. This is pretty scary indeed!In nominal terms, we'd have $657,000 left today.I used an initial portfolio value of $100 on Jan 1, 2000. I then subtracted $4.I then multiplied that number by the REAL return of the portfolio per year.Rinse and repeat 11 times.Real returns of retirement port (Inflation @ 3%):2000: -292001: -22002: -222003: 432004: 102005: 22006: 112007: 32008: -302009: 362010: 12
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra