Sentences with phrase «terminal value of your portfolio»

For all asset allocations, the penalty was calculated as one minus the ratio of the terminal value of the portfolio with delayed or spread investments to the value of the portfolio when all investments were made as early as possible in January (baseline).

Generally, the lump - sum penalty had a positive relationship with the investment delay — the longer investor waited, the bigger the shortfall of the terminal value of the portfolio.

Using some bonds in place of cash for ballast will increase (perhaps only slightly) the terminal value of your portfolio in most cases.

A parallel to this in the indexing world is: higher the initial withdrawal rate, lower the terminal value of the portfolio.

Not exact matches

The first chart in the article plots the terminal value on May 31, 2015 of two hypothetical portfolios.

By reducing the annual return 0.5 percent to 4.5 percent, a seemingly insignificant reduction, you reduce the expected terminal value of the retirement portfolio by roughly $ 30,000.

In our theoretical example with a 5 percent return, working until 70 rather than 65 increases the expected terminal value of the individual's portfolio from $ 353,000 to $ 480,000.

For example, if delayed or spread investments resulted in a terminal portfolio value of $ 93,000 and January lump - sum investments generated $ 100,000, then the penalty was 1 — 93/100 = 7 %.

Because of compounding growth (Article 3), we know that the slightly higher returns of bonds in a bond / stock portfolio will cause a substantially higher terminal value than a portfolio with a similar balance of cash and stocks in most historical periods.

Thus, the first 10 % of turnover accounts for more than half the terminal value investors would forgo if they liquidated all portfolio holdings and reinvested the proceeds every year.

There is no two ways about it — higher portfolio return of Irene will result in higher terminal value.

Also called the internal rate of return, the interest rate will make the present value of the cash flows from all the sub-periods in the evaluation period plus the terminal market value of the portfolio equal to the initial market value of the portfolio.