ProFolio

What is the expected or average annual return of your portfolio? What is the expected annual volatility or risk of your portfolio? Everyone who has an investment account should want to know the answer to these questions. These numbers define the probability of portfolio performance in any given year. What is the methodology you use to construct an investment portfolio? Suppose you or your advisor decide to invest in an individual stock instead of an index fund. The volati

The conclusion we made in part 1 was that as long as you lived beyond age 79 it made sense to delay filing for Social Security until age 70 since the total benefit received was higher than you received if you filed at age 62. This ignores the time value of money - the fact that the social security benefit received can realize a positive return. The chart shows that if you can achieve a positive real return, that is a return above inflation, on the social security benefits re

Social Security benefits increase up until the age of 70 for those individuals who delay filing. The general increase is approximately 8% per year. Is the extra benefit worth the delay? How many years will it take to make up the difference? Here is a plot of the total social security benefit vs age for different filing ages. If you live long enough, the total benefit received will always be greater at some point if you delay filing. The total benefit for filing at age 70 i

There are many factors that go into the choice of a college that have nothing to do with whether the college is a private or public one. However, there are distinct differences between private and public colleges. Private colleges typically are smaller than public colleges and offer a smaller student to teacher ratio, while larger public colleges offer a variety of degree programs not offered at smaller private colleges. Some students may feel lost at a larger public univers

You will need about 70% of your pre-retirement income to maintain your standard of living in retirement. The percentage of your pre-retirement income which social security replaces varies by income level. Social security benefits replace nearly 70% of pre-retirement income for people with career average earnings of $12,341 while it replaces around 23.8% of pre-retirement income for people with career average earnings of $120,418. Individuals with higher average earnings need