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A Lesson From World Cup- Too Optimistic Projections


bridgetreetopwalk England defeated by Germany in World Cup. Yet again.

Hopes were high when England was preparing for this World Cup.

The coach said they can go all the way to the finals. So did some of their players. However, they struggled through the group stage and met a rampant Germany side which is reinvigorated with talented players.

It is another tragedy for the English supporters and the legions of BPL (Barclays Premier League) fans all over the world.

Were they being too optimistic?

What about your own projections of returns for investment to meet your retirement needs?

What happens if your projection of returns fail to match reality?

And your retirement kitty falls short of what you felt you need.

If you had planned for yearly investment projections for retirement and along they way, you found out that you fall way short of the target. What do you do next?

There are 5 options:

1. Save even more now

2. Look for investments with even higher returns along with higher risks

3. Look to do more with your retirement funds by investing a portion of your retirement funds even during the retirement

4. Prolong your working life and put off retirement

5. Pretend nothing is wrong and go on as usual

Of course, some people will grin and say shorten your retirement and die earlier. But that isn’t a viable option for most people.

It could be that huge drastic drops like what happened in 2008 and the early part of 2009 make option 5 attractive. I found that investment is often boring and you basically wait patiently or otherwise. I remember an article quoting Warren Buffett wisdom on the market:

“The market is an efficient mechanism for transferring money from the active to the patient”

What would you do when your projections fall short?



1. 7 Lessons the World Cup Offers on the Stock Market

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