Financial Planning - Practice versus Reality
Financial Planning - Practice versus Reality
A Financial Plan is a valuable resource that helps identify problems, clarify goals, and establish a plan for the future. Financial plans can also be misleading because they rely on past data that may not be relevant to the future, and average performance data that may prove correct can still lead to a spending plan that ultimately fails.
Sequence of Returns - Accumulation
Sequence of Returns - Accumulation
Poor early returns versus strong early returns - After 30 years, an initial investment of $500,000 with no withdrawals has the same account value regardless of initial annual returns.
Sequence of Returns - Retirement Phase
Sequence of Returns - Retirement Phase
Poor early returns versus strong early returns - After 30 years, an initial investment of $500,000 with regular withdrawals continues to have an account value above the initial investment assuming strong early returns. With poor early returns and regular withdrawals, the account is depleted after 16 years.
CIBC Income Accelerator
CIBC Income Accelerator
With dividend reinvestment a $10,000 investment in CIBC stock in January 1991 Is Worth $410,907 in December 2021 and Pays $16,266 Per Year. The power of the Income Accelerator!