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Investment Return

It is very important to know what level of return will get you to your destination. If you can attain your retirement goal by implementing a strategy that earns 7% per year, then there is no need to take the additional risks of attaining a 13% average return. On the other hand, if you need an 11% return to meet your goals, then earning 5% will result in great disappointment. This section helps you to determine the level of investment return you will need to achieve your goal.

The actual computation required to determine the appropriate investment rate is very complex. However, I have created a much easier method that approximates the investment rate. The estimates provided by this method are very close to the “true” rates computed using the more complex equations.[2]


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