where does the expected return of 11.11% come from? Thanks MGG
Never mind I feel like an idiot for asking : (
LOL… I have a big note in the column of that page as well…“where does the 11.11% come from?” I guess I either asked in here, or figured it out myself and have the answer written down below. I think I kept leaving out the managing expense when I was calculating it at first.
Ha I was just trying to add the numbers to get 11.11 instead of doing the whole (1+xx)(1+xx)-1 thing…
In paragraph 1: adding spending rate of 8.5 + inflation 2.00 + cost of managing the fund is .40 = (1.085)(1.02)(1.004) - 1 = 11.11