Nicola Wealth - Pacific Dental Conference - John Nicola
End of an Era
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2. Apartment Furniture Second Car Car Education First Home Furniture Appliances Utilities Insurance Children Vacation Home Travel Leisure Services Upgrade Family Home Travel Medical Care Savings Department of Labor Study
4. Thirty Year United States Treasury Bond Yield Source: Big Charts.com 8.2% 4.2 % Return 4.2 % Taxes 20 % or .8 % Inflation rate 3.8 % Net ( .4 % ) Greatest Bull Market in Bond History. Yield has fallen 38 % in the last ten years creating a 3.8 % annual gain on top of the interest payment of 6.8 % for an 10.6 % annualized return.
8. $500,000 invested @ 6 % $250,000 $500,000 $895,424 What return on $350,000 is required to reach $1,006,098 in 2 years ? 54 % per year ! 100% 6% compounding interest will reach $1,006,098 by 2012. Why do you need to protect your portfolio against a step back ? It takes a 100 % gain to get back to where you started after a 50% step back. More importantly, you’ve lost 10 years of your life at the same time. S & P 500