7Twelve by Craig L. Israelsen

Author:Craig L. Israelsen
Language: eng
Format: epub
Publisher: Wiley
Published: 2010-06-29T16:00:00+00:00

The Saving Years and the Spending Years

Investors need a portfolio that is designed to meet their needs in the accumulation phase of life. This phase typically occurs between age 25 to 65—the working and saving years. The ideal guideline is to invest 10 percent of your annual salary each year into a retirement portfolio, such as the 7Twelve portfolio. Shown below in Figure 7.1 is an example of how the 7Twelve accumulation portfolio grew over the 10 years from January 2000 to December 2009.

The starting balance at the beginning of the year 2000 was assumed to be $10,000. If that seems like too big a number, just roll with it and enjoy the analysis! The investment at the end of the first year was $1,000. Each additional end-of-year annual investment increased by 10 percent over the 10-year period.

Figure 7.1 Performance Comparison in the Accumulation Phase

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