Living on Equity forecasts

Discussion in 'Share Investing Strategies, Theories & Education' started by jscott, 16th Apr, 2006.

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  1. jscott

    jscott Well-Known Member

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    Just wondering if it would be possible to include examples with 20 or 40 year forecasts into the next instalment of the LOE articles. My own modelling in Excel show things are great early on but get ugly in later years. I'm sure Steve can explain this, but it would make sense to include future projections, especially if you model it with a few years of no (or -ve) growth in the early years...
    :)

    ps. when is the next one due?
     
    jscott, 16th Apr, 2006
    #1
  2. Maverick__

    Maverick__ Well-Known Member

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    What Excel file do you use for modelling? I remember someone posting their version a while ago. Or do you have your own one? Is it a "generic" or "specific" model for your circumstances? Do you mind sharing it?

    Regards.
     
    Maverick__, 16th Apr, 2006
    #2
  3. jscott

    jscott Well-Known Member

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    Hi Maverick,

    Its just my tweaks to the SS available on the Somersoft forum...
     
    jscott, 17th Apr, 2006
    #3
  4. Alan__

    Alan__ Well-Known Member

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    If you only ever draw down a maximum of 2/3 of the previous years growth and invest the other 1/3 for interest payments/rainy day, how is it going 'pear shaped'?
     
    Alan__, 18th Apr, 2006
    #4
  5. jscott

    jscott Well-Known Member

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    I'll post my own SS when I get home tonight that compares the effects of compounding of interest and growth.
     
    jscott, 18th Apr, 2006
    #5