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 Fund Investment Corner v3, Funds101

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MGM
post Aug 27 2013, 01:24 PM

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QUOTE(wongmunkeong @ Aug 25 2013, 11:21 AM)
Interesting stuff - stress testing Asset Allocation (a variety of sub-methodologies)
https://www.dropbox.com/s/ep841u04ks0lri9/s...est_taa_v01.pdf
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Bro, can't access the article, got this "An error occurred while rendering the page".
MGM
post Aug 27 2013, 01:31 PM

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QUOTE(yklooi @ Aug 27 2013, 01:29 PM)
just confirmed,...i can access.
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Can't access with IE9 but Firefox is OK. Thanks.
MGM
post Oct 29 2014, 05:08 PM

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QUOTE(wongmunkeong @ Oct 29 2014, 02:01 PM)
Yup, can but check formulas yar. can run
[attachmentid=4191376]
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Thanks bro, I entered my data and it told me that my money will run out in 40 years time, assuming ROI of 7% and inflation of 4%. In 40 years time my years' goals cost is rm450k. rclxub.gif
By changing the ROI to 8%, my portfolio size keeps appreciating. Now need to restructure my investment to achieve that.

Btw, when I click the <File>, only <download as> is allowed but not <make a copy>. Do I need to install something?

This post has been edited by MGM: Oct 29 2014, 05:19 PM
MGM
post Oct 29 2014, 10:02 PM

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QUOTE(wongmunkeong @ Oct 29 2014, 07:04 PM)
Did U log in with your Google a/c?
If U did and U already "made a copy", that copy is your private Google Sheet already.

er.. if U've no Google a/c.. heheh- sorry ar, can't "make copy" coz make copy to where? sweat.gif

Of course, I knew that, how silly of me tongue.gif

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BTW, hint hint (and real life):
Try placing in cell G14:
Net Salary * 1/3 *12 (ie. U save 1/3 of your net salary - may be tough but do-able)  +Net Bonus *1/3 (ie. U save 1/3 of your bonus - do-able)
VS
Net Salary * 5% *12 (ie. U save 1/3 of your net salary - may be tough but do-able)  +Net Bonus *1/3 (ie. U save 1/3 of your bonus - do-able)
VS
Net Salary * 10% *12 (ie. U save 1/3 of your net salary - may be tough but do-able)  +Net Bonus *1/3 (ie. U save 1/3 of your bonus - do-able)

See the column D when turn red - which year for all 3.
Notice a big enough difference even with 10% vs 5%?
This shows that DEFENCE is very important as well (keeping $), not just making $ (returns pa%)
With this, U can literally see the future visually (RED = must die liao, no $)

Hope to quit my job so that I can manage/grow my portfolio in the next couple of years. So no more fixed income
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Other than that, one can also use the sheet to ascertain how much death insurance required.
Eg. i change the retirement year to 1 or 2 from now, simulating my death thus no more income and need to eat into cash investments' returns.
Also no more savings

Then scroll down lor to see how long family can live off current VS what i want/thought.
See the variance if any, and i can agak agak how much more death insurance i need.
Just a thought  notworthy.gif

Interesting to see the differences when I make changes to cost/year or ROI or Child's UNI cost. TYVM. notworthy.gif

Any chance that u are going to become a Professional Financial Planner? rclxms.gif
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This post has been edited by MGM: Oct 29 2014, 10:08 PM
MGM
post Oct 30 2014, 05:42 PM

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QUOTE(wongmunkeong @ Oct 30 2014, 09:14 AM)
No sifu here Sir/Ma'am, i'm just another worrier and problem solver  sweat.gif

Thank U for your feedback.
Makes it worthwhile for me.

As an evolving work - i've again UPDATED the GOOGLE SHEET:
Added sheets to ascertain our total portfolio's returns based on our asset allocation + track investments'/trades' net profits/losses
Sheets named "Asset Allocation Planning" & "Investment / Trade Tracking" sweat.gif (being captain obvious laugh.gif )
Sample data provided for easier visualization & understanding

Again, please play with the YELLOW cells' variables

notworthy.gif
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Went to your reactivated blog and read thru your recent posts, thank u for the updated GooGle Sheet. I was playing around with 'what if' data to see the outcome and was fascinated that a small change in % in ROI or inflation can affect your life plan. It is a good guide for us as we live thru the coming years with actual data. Thanks again for your effort. Btw how to calculate(or what formula to use) the current value of the Portfolio size (col D) of the respective years?
MGM
post Oct 31 2014, 04:41 AM

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QUOTE(wongmunkeong @ Oct 30 2014, 08:40 PM)
Clarification:
U are looking to find "Present Value" of Column D's future portfolio? ie Column D, Row 14, 15, etc?

Simple, look at the row, say 16.
Year = say 2016
Current year = say 2014
D16 = $100,000
Inflation assumed = 4%pa

Present value = $100,000 * (1 +4%pa inflation) ^(2014-2016)
or Future Value *(1 + Inflation %pa) ^(years to regress inflation)

OR U can copy below into C16  brows.gif
=D16 *(1+$G$5)^($G$1-B16)

After that U can just copy C16 to any C14 to Cwhatever (yellow cells in Column C) to see the Present Value

Hope that helps
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Thanks again. That's exactly what I want. The figures now bring me down to earth, a multimillionaire in 50 years time is only worth a million now, all thanks to inflation.

 

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