Sentences with phrase «assumed return on a portfolio»

The sponsors of private plans must therefore contribute much more for every dollar of promised benefits than governments contribute to teacher pension plans that value liabilities using an 8 percent assumed return on portfolios heavily weighted with stocks, hedge funds, or private equity.

Virtually all professional economists agree that calculating the value of guaranteed pension benefits using the assumed return on a portfolio of risky assets «understate [s] their pension liabilities and the costs of providing pensions to public - sector workers.»

Not exact matches

As for recouping your investment — I am assuming since this is Mark Cubans Economic Stimulus plan and not Mark Cubans build my portfolio plan — a return on your investment over three years plus capitalized interest of that equal to that which would be earned in a money market fund should suffice.

To return to our example of replacing a # 25,000 salary with passive income, if I invested mainly in shares and rental property and only diversified the portfolio into fixed income such as bonds in my final years of saving, I'd plan on investing around # 7,000 a year into shares for 25 years, assuming a pretty aggressive inflation - adjusted annual return of 7 %.

It assumes an average return of 6 % on an initial portfolio of $ 250,000 less an annual fee of 0.30 % for Vanguard Personal Advisor Services and the industry average annual advisor fee of 1.02 %.

We assume that our portfolios will produce 10 % - a-year returns, so we figure we can count on a $ 100,000 portfolio to throw off about $ 10,000 a year in income.

Let's assume a portfolio of 100 % stocks will return 6 %, and a portfolio of 100 % bonds will return 3 % on an annualized basis.

These returns are annualized, and they assume the portfolio was rebalanced on January 1 of both 2012 and 2013:

In subsequent articles I will conduct some calculations that assume dividends are reinvested annually, but all the portfolio growth and spending assumptions are still on a total return basis.

The Examples assume: (1) you invest $ 10,000 in the noted class of Units in the noted Investment Portfolio for the time periods indicated; (2) your investment has a 5 % return each year; (3) the Investment Portfolio's operating expenses remain the same (including the operating expenses of the Underlying Fund (s)-RRB-; (4) all Units redeemed, if any as noted, are used to pay Qualified Higher Education Expenses (the table does not consider the impact of any potential state or federal taxes on the redemption); (5) you pay the applicable maximum Initial Sales Charge on Class A Units and any CDSC applicable to Units invested for the applicable periods in Class C Units; and (6) for the Class C Units Example, the Class C Units converted to Class A Units at the end of sixth year and were thereafter subject to the costs associated with Class A Units.

Extrapolating the median 20 - year difference in annual returns observed by Cambridge Associates on an investment portfolio of $ 50,000, with $ 5,000 contributed annually over a 45 - year period (assuming quarterly interest compounding) implies a portfolio value spread of approximately $ 4 million at the end of the period.

On the other hand, the return on the e-Series portfolios assume the investor had a perfectly balanced portfolio on January 1 and didn't make any clever moves during the yeaOn the other hand, the return on the e-Series portfolios assume the investor had a perfectly balanced portfolio on January 1 and didn't make any clever moves during the yeaon the e-Series portfolios assume the investor had a perfectly balanced portfolio on January 1 and didn't make any clever moves during the yeaon January 1 and didn't make any clever moves during the year.

«I also assumed returns of 6 % gross annually on her RRSP, as well as a very conservative 2 % net return on her non-registered investments — much lower than the 15 % average annual rate of return she's received from her investment portfolio up until now.»

This is because we're assuming reasonable long - term rates of return on a normal, sane, rational, well - diversified investment portfolio.

While the guaranteed rate of return on the cash value may be lower than other financial products, it can lower the overall volatility of a portfolio (though this benefit assumes you have a breadth of existing investments).