PERSONAL FINANCIAL PLANNING

An alternate approach, calculates "intrinsic price" by using current earnings per share and growth rate to calculate future EPS. Multiplying by average compare/ industry PE ratio - provides a future price. Assuming a min. return on investment, this is then discounted to calculate current intrinsic price (At 15% return, rule of 72 would mean doubling in 5 years, so divide year 10 price by 4)... Studies show 95% of all inflows to mutual funds, flow to highly rated funds. These ratings are based on historical 3,5 and 10 year periods. But in a majority of cases - the future performance of these funds lags the market (some times, substantially). Analysing winning funds over a 5 year period , John Bogle found that - while the funds achieved a gain of 13%, investors in the funds incurred a loss of 57%... How does one save enough over 30 years of working life for 30 years in retirement? The answer is simple - the magic of Compound Interest

Also known as: Personal Financial Planning Inc.