Follow the Simple Math How to calculate the % return necessary to recoup your lost principal. Example: $10,000.00 – $3000.00 $7,000.00 Divide the loss, $3,0000 by the remaining principal ($7,000) = .4286%, rounded off to 43%. A 43% Gain necessary to recapture the principal of a 30% loss. (So to check the math, multiply $7,000 […]
John’s Story John considered himself to be a conservative investor. He knew that he needed growth to stay ahead of inflation and to reach his overall financial goals for retirement. So, he realized the benefit of having a brokerage account. On his broker’s advice, John invested $10,000.00 in the 2020 American Jubilee ETF. At the […]
For many years, retirees have relied on the 4% rule as a guideline for determining safe withdrawal rates from their retirement savings. However, this rule is now under greater scrutiny within the financial planning community. First introduced by William Bengen in 1994, the 4% rule advises that retirees withdraw 4% of their retirement portfolio in […]
Sequence of returns risk refers to the impact that the order of your investment returns can have on the longevity of your retirement savings. This risk becomes particularly significant if poor market performance occurs in the early years of retirement, as it can accelerate the depletion of your savings when combined with regular withdrawals. Imagine […]