Retirement Investing Model
Model consist of investing investing in 5 funds within there 401k or 403B retirement plans.le
401k or 403B company adminstrators decide which mutual funds or bond funds selections are avaiable for investing.
Our CFE model for our investors are to buy 5 funds and invests 20% in each fund. Once fund exceeds 20% we would advise selling the fund shares to keep each fund at 20%. The profits would be store in a Stable fund or cash fund to build cash because cash is always KING!
Building cash in a stable fund or cash account allows investors to buy stocks on market down day. Note it is okay if a fund exceeds 20% due to appreciation.
How we explain it to our customers is to select active and index funds.
1. 20% in S&P 500 index fund (index fund) Passive
2. 20% in S&P Extended Fund (Index) Passive
3. 20% in Growth Fund (Active)
4. 20% in Target Fund (Active)
5. 20% in Stable or Cash Fund
100% invested I
IRA model is similar with zero cost funds that Fidelity provides
What we could do with a software program
Invested amount at the start of a retirement account.
$1000 invested in each fund for a total of $5000
A Hyporthetical software calulation developed to determine how long it would take at what percentage return per year, that would double the $5000 investment
The goal is for software to determine how long it would take at a certain pecentage return for customers investments would reach 1 million dollars. Our goal with the designed portofolio would produce 1 million dollars over 10 years and 20 million over 20 years?
Not sure if this is possible but I think with Dan's ablity to write the code assuming the market continues to grow.
Carl and Dan please add your comments