Rs 60 lakh to Rs 1.2 crore . 8 years . needs 9 pct a year
Both mixes hit the goal. Only one survives the year before it.
| |
60/40capacity + need |
90/10what the quiz picked |
| Expected return a year |
9.8 pct |
11.5 pct |
| Clears the 9 pct goal |
yes |
yes |
| Crash two years outequity -40 . debt +5 |
-22 pct |
-35.5 pct |
| Climb back to break even |
+28 pct |
+55 pct |
Both clear the roughly 9 percent the goal needs. The extra equity bought 1.7 points of return he never asked for and a hole twice as deep, two years before he starts selling. Return he did not need, drawdown he could not afford.