Will conventional wisdom work for you? The odds are about 29% that it will. Standard conventional wisdom taught by most financial advisors is diversifying your portfolio. As you are younger you take more risk with investing. As you grow older you move more into safe investing.
Unfortunately the odds of this strategy succeeding in building you a large nest egg is about 29%. (I think the actual success rate is probably even lower because the authors don’t take into account the fact that most people sell during low periods due to the emotional factors of losing money.)
Take a few moments and read this article: The odds for a retirement nest egg, recalculated.
The authors used 80 years of marekt data and ran thousands of simulations. Basically the authors point out that the strategy doesn’t work due to market volatility. If you would like to learn more about how to eliminate market risk contact us here for a free video.
