Sentences with phrase «hypothetical investor»

To get an idea of what that means, consider the three hypothetical investors described below.

In our new white paper, Understanding Your Portfolio's Rate of Return, Justin Bender and I explain the differences between these two methods using two hypothetical investors with a $ 250,000 portfolio: the first makes a single $ 25,000 contribution while the other makes a $ 25,000 withdrawal.

Robbins cited a study from the Charles Schwab Corporation that took into account four hypothetical investors investing $ 2,000 annually over a 20 - year period.

What amazes me is that these hypothetical investors would be considered some of the smartest around, investing steadily every month no matter what the market was doing, for decades on end.

(The «target date» roughly corresponds to the year the hypothetical investor reaches retirement age.)

Total - return percentages shown are the returns received by the hypothetical investor described above.

Our hypothetical investor puts $ 50 into an S&P 500 index fund at the start of every month, starting in October 2007 — the most recent stock market peak before the beginning of the Great Recession.

Because humans are often overly averse to risk, our hypothetical investor might have been tempted to abandon the investment plans during the bad months.

Say Amy (a hypothetical investor) rebalances annually.

Let's invent two hypothetical investors, Alice and Bob.

If a hypothetical investor began contributing and investing $ 5,500 to an IRA at age 25 and keep making the same annual contribution until age 65, you could potentially accumulate $ 703,119 — assuming a 5 % rate of return.

One way to talk about 2017 positioning in more concrete terms than just more or less is to start with a basic or neutral portfolio set up to meet specific needs and preferences of a hypothetical investor.

For example, consider a hypothetical investor, Joanna.

We evaluated them on the basis of four main fees: base trading fees, options contract fees, options assignment fees, and options exercise fees for a hypothetical investor looking for the most cost - efficient brokers for a bucket of 10 options trade that he'll exercise once.

We evaluated them on the basis of four main fees: base trading fees, options contract fees, options assignment fees, and options exercise fees for a hypothetical investor looking for the most cost - efficient brokers for a bucket of 10 options trade that he'll exercise once.

The blank white spaces indicate years in which our hypothetical investor ran out of money because the portfolio returns were insufficient to keep up with constantly rising withdrawals.

Find out how Lydia, a hypothetical investor, used the Lifestyle - Ready Strategy to help pay for discretionary expenses and important milestones in retirement.

If in 5 years interest rates return to their historical norm of about 4.5 % for the 10 year Treasury bond, our hypothetical investor will only be able to sell his 1.6 % bond for about 77 cents on the dollar (Because who would want to purchase a bond yielding 1.6 % when interest rates are 4.5 %?

The orange dot is where a hypothetical investor may indicate her risk tolerance.

That hypothetical investor who sold in 1996 would have seen the Nasdaq climb 400 % over the next three years.

So our hypothetical investor above, whose accounts are all split 60/40, is likely paying extra in taxes compared to if they optimized their asset allocation.

Suppose a hypothetical investor decided to invest $ 10,000 in pre-tax dollars into an RRSP.

Of course, an omniscient stock trader would have done far better than either of our hypothetical investors.

A hypothetical investor in the 50s who observed that yields were at 20 - year highs and unlikely to rise further would have been wrong for over 30 years.

To understand this better, recognize that with each of the examples above the hypothetical investor was purchasing the stocks within a reasonable range of similar earnings.

For example, consider a hypothetical investor, Joanna.

That means our hypothetical investor with average annual returns of 15 % with a portfolio volatility of only 10 %, if he looks at his portfolio daily, will still feel far more pain than gratification.

Consider, e.g., a hypothetical investor who wants to tilt her portfolio toward small - cap growth stocks.

Kurt wrote about a hypothetical investor, Lucy, a recent retiree portfolio invested almost entirely in stocks.

While this 10 % guideline is a helpful starting point, it was calculated for a hypothetical investor who saved 10 % for 30 years and whose income at the beginning of the period was less than $ 100,000.

Say Amy (a hypothetical investor) rebalances annually.

We have assumed our hypothetical investor is taxed at the maximum combined federal / provincial rate during each tax year.

If that hypothetical investor sold after the first huge price crash back in 2013, they would've merely made a few thousand dollars instead of a few million.

The biggest pushback I get when I present this to prospective investors is that for one reason or another, the hypothetical investor in this case study isn't like them.