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Step 12: Invest & Relax

5. Take less risk during the drawdown phase 6. Use glide path (steadily decreases risk over time) Figure 12-4 depicts the results of a portfolio simulation for an individual with a retirement age starting at 67. The green and gold bars represent the probability of the portfolio surviving through various ages. A portfolio survival simulation is a valuable tool for investors to use for establishing a degree of confidence about the sustainability of their portfolio through their lifetime. Revisiting the retirement analyzer each year allows investors to make sure they are on course — much like an onboard navigation system for a car. The closer one gets to their destination, the more finely tuned the directions become. Figure 12-4

Index Funds: The 12-Step Recovery Program for Active Investors  

This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...

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