In retirement planning one of the inputs to a forecast is an assumption about return on investments... and there are a
number of rules of thumb thrown around.
In the investment world, the pressure to act can prompt shortcuts and the
use of rules of thumb that may not apply to the situation at hand.
I don't
know of any rules of thumb that can tell you whether it's a good idea to devote some of your retirement savings to an annuity.
Nevertheless, these two investments provide a good example and
paradigm of the rule of thumb that should be used in asset allocation choices between qualified investments.
Because of the size of the crowd (about 20), I employed a
few of my rules of thumb when dealing with so many guests: reduce the number of dishes served; use paper or plastic, not glass; and, most importantly, serve buffet style or directly from the stove.
Chris had been nervous about leaving at the right time but says he knew we got it right
because of a rule of thumb I told him from Natural Hospital Birth: «It should take you 10 minutes to get to the car.»
Avoiding an online dating scam involves becoming resistant to emotional manipulation through a
combination of rules of thumb and ingrained good sense.
There's kind
of a rule of thumb in Asset - Liability management, that you match liquidity over the next 12 months, and match interest rate sensitivity overall.
If you've worked with a financial advisor to help you plan for retirement or read any number of financial publications or googled «retirement strategies» then you've seen some
form of this rule of thumb for a secure stream of retirement income.
Even if you wanted to have a cash emergency fund, $ 60,000 is 125 % of your annual pre-tax income, which is many
multiples of any rule of thumb emergency fund target I've ever heard.
While this may seem like an efficient way to save for home repairs,
critics of this rule of thumb argue that the amount set aside is somewhat arbitrary, and doesn't account for a wide variety of factors, such as the age of your home, whether most of the value of your home is in the land itself, whether your home is attached or single family, etc..
Here are
some of the rules of thumb that help me make the most of every moment on my solo adventures.
But physicians caution that there are always exceptions to
any of these rules of thumb.
Similar to my diet, when it comes to my beauty routine, one
of my rules of thumb is that what I put onto my body should contain ingredients that I can put into my body as well (think: nothing full of hard - to - pronounce chemicals or unknown substances).
One
of my rules of thumb is that, generally speaking, the larger the commission is for the salesperson, the worse the product is for the consumer.
One
of my rules of thumb is that if none of the other risks are offering adequate reward, then it is time to increase foreign bond positions.
Well, as you said,
all of the rules of thumb that get thrown out there are pretty wild speculation and don't really address anyone's personal situation, so they aren't worth much.
Foreign currency — One
of my rules of thumb is that when there is not much compensation offered for risk in the US, it is time to look abroad, particularly at foreign fixed income.