Re: Reserve Studies
From: Brian Bartholomew (bbstat.ufl.edu)
Date: Mon, 7 Aug 2006 11:43:52 -0700 (PDT)
> It's reasonable to expect an investment can earn 4% a year, each year
> for 20 years.  I'm really rusty, but isn't the long-term stock average
> something like 12%, not counting inflation?  Which makes the real rate
> about 7-8%?  What happens to the reserve if inflation goes over 7% to
> create the appearance of paying out social security for baby boomers?

| Our current consultant is using 6% at the moment

Do you mean your plan is set up for investments that earn a net 6%
after monetary inflation and taxes?

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> Think of this fund as preserving the real estate in the condition it
> was when it was purchased.

I certainly like the goal of keeping the real estate in a roughly
constant good condition, but I'm wondering if there are other ways to
implement that goal that don't involve saving a pile of near-cash.

                                                        Brian

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