Tuesday, October 19, 2021
News for Retirees


Efficiency Deviation: New Investments, Withdrawals, and Sequence of Returns

Share this…FacebookPinterestTwitterLinkedin The revealed efficiency of mutual funds, exchange-traded funds, and shares is predicated on a number of assumptions: A…

By Staff , in Investments , at May 24, 2021



The revealed efficiency of mutual funds, exchange-traded funds, and shares is predicated on a number of assumptions: A lump-sum preliminary funding, usually $10,000; no further investments, or withdrawals, throughout the timeframe of the reported efficiency; and no inflation or taxation. But taken collectively, these assumptions create a severe disconnect between reported efficiency figures and the way advisors and shoppers truly make investments and withdraw cash, since few make investments with only a single lump sum.

The logic behind these assumptions…



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