The 1968 Retiree
Let’s look at two different retirement scenarios based on some research done by T. Rowe Price Associates. They hypothetically invested $250,000 at the end of 1968. Sixty percent of the portfolio was invested in the S&P 500 index, 30 percent into U.S. government bonds, and 10 percent in U.S. thirty-day treasury bills. From January 1969 until January 1999 the portfolio had an average return of 11.7 percent. In the first (more…)
