1. The time your money will be invested is important in determining an asset allocation strategy. A longer time frame could help you ride out short-term declines and may provide better long-term returns. How long will this money be invested?
2. Do you plan on withdrawing 30% or more of your original investment during the next 5 years?
3. Since World War II, the worst 12-month holding period return for U.S. Stocks was -39% and -17% for Long-Term U.S. Government Bonds. With this in mind, please answer the following question: I understand that the value of my portfolio will fluctuate over time. However, the maximum decline in the market value of my account that I am willing to tolerate over any twelve-month period is:
4. Apart from the Great Depression, the longest time investors have had to wait for their investments to return to their prior levels from the beginning of a market decline has been 35 months for stocks and 22 months for bonds. With this in mind, please answer the following question: For the assets being invested for this goal, the longest I am prepared to wait for the market value of my account to return to prior levels following a decline is: 5. Since 1926, the average annual return for U.S. Stocks has been 10.4% and 5.4% for US Government Bonds. What is the average annual return you seek to generate from these assets?
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