Comments on: When Returns Lie Part II http://evolutionofwealth.com/2009/09/when-returns-lie-part-ii/ Helping People Find, Keep and Enjoy Their Money Tue, 20 Dec 2011 16:21:36 +0000 hourly 1 http://wordpress.org/?v= By: Evolution Of Wealth http://evolutionofwealth.com/2009/09/when-returns-lie-part-ii/comment-page-1/#comment-59 Evolution Of Wealth Sun, 13 Sep 2009 19:59:41 +0000 http://evolutionofwealth.com/?p=223#comment-59 Thank you for your comment. I have to give Paul credit he came out with what I was sort of looking for. I wanted someone to say I was wrong because there is a better way to do it. Unfortunately, I think I showed that there's a lot of people out there that don't realize it and believe some of the misinformation. Have a great day. Thank you for your comment. I have to give Paul credit he came out with what I was sort of looking for. I wanted someone to say I was wrong because there is a better way to do it. Unfortunately, I think I showed that there’s a lot of people out there that don’t realize it and believe some of the misinformation. Have a great day.

]]> By: Retirement Savior http://evolutionofwealth.com/2009/09/when-returns-lie-part-ii/comment-page-1/#comment-58 Retirement Savior Fri, 11 Sep 2009 19:22:48 +0000 http://evolutionofwealth.com/?p=223#comment-58 That's a good post, especially for funds or investments that are very volatile. Looks to me like for a normal retirement portfolio at 10-12% volatility, the difference between arithmetic and geometric returns would be about 50-60bps. For the S&P, the difference would be about 1.5%, and for emerging markets it's closer to 3%. P.S. - Your friend Paul could be a bit gentler in his tone. That’s a good post, especially for funds or investments that are very volatile.

Looks to me like for a normal retirement portfolio at 10-12% volatility, the difference between arithmetic and geometric returns would be about 50-60bps.

For the S&P, the difference would be about 1.5%, and for emerging markets it’s closer to 3%.

P.S. – Your friend Paul could be a bit gentler in his tone.

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