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[Solved] Questionable "Total Savings" at Review/Graphical Projections/Asset Allocation

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(@patton525)
Trusted Member
Joined: 5 years ago
Posts: 50
Topic starter  

How can my Total Savings continue to increase after retirement using Advanced Portfolio Modeling and Asset Allocation Mode 2 when the only earnings I have are stock gains, etc. and LOTS of expenses?



   
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(@turk182)
Eminent Member
Joined: 3 years ago
Posts: 19
 

Your stock gains are more than your expenses.



   
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(@hines202)
Honorable Member Customer
Joined: 5 years ago
Posts: 509
 

A great thing about online is you can easily drill down into the numbers in the tabular projections. Make sure those expenses are correct. Make sure the stock gains are realistic. Now that we can enter the return assumptions in nominal or real, I'm seeing lots of mistakes by folks in that area. Also look for any other income it might be seeing that you didn't intend - SS, pension, annuity, windfall, etc.



   
ERIC GOLD reacted
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(@abq-goldgmail-com)
Trusted Member
Joined: 1 year ago
Posts: 42
 

@patton525

You have not given enough information to answer your question, but presuming Pralana is correct (easily verified in the tabular output), there are only two possibilities: your investments are growing faster than your expenses; or your net worth is growing in nominal numbers but losing wealth once inflation is considered.

Are you familiar with effective Vs absolute settings ?

I'll also mention that the stock market has been on a bull run. It would be unwise to presume that will continue indefinitely. Depending on how much of your portfolio is stock (I presume indexes, that have gone up around 25% this year), it would be remarkable in a bad way if your expenses were able to eat up all the growth.



   
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