In a previous post, we talked about asset allocation for retirement. To design an asset allocation for a financial goal for an investor, we need to understand time horizon of the goal and risk capacity for the investor. In this post we will talk about the concept of time horizon. Using time horizon, we can arrive at asset allocations for different goals. In another post, we will talk about risk capacity for the investor.
In this post, we showed that the S&P 5001 stock market index is a candidate investment that results in a bigger nest egg than our twin’s. In this post, we discuss mutual fund products, including an S&P 500 one, that we can invest in. A portfolio can own one or more mutual funds. We will make a comparison between a few portfolios that are candidates for retirement investing.
在《 雙胞胎與投資》的討論中，我們提到，在假設的 6% 左右的年利率下，提早開始投資並投入較少的本金金額，到了退休年齡，可以與較晚開始但投入更多本金金額的雙胞胎打成平手。這種情境假設了一段長達 35 年的投資生涯。但這樣的投資是否真的存在？
In the post Twins and Investing, we discussed how, with a hypothetical annual interest rate of close to 6%, starting contributions early with a smaller total amount can tie at retirement age with someone who starts later but contributes significantly more. This scenario assumes a 35-year investing career. But does such an investment exist?
想像一下你和你的雙胞胎兄弟姐妹，每人每年投資10,000美元，但開始的時間不同。 你投資10年後停止，而你的雙胞胎在你停止後才開始，並一直投資到退休年齡。到65歲時，誰的總資產更多？年利率如何影響結果？
Imagine you and a twin each start investing $10,000 annually, but at different times. You contribute for 10 years and then stop, while your twin starts after you stop and contributes until retirement age. Who ends up with more money at age 65? How does the annual interest rate affect the outcome?