The average phenomenon

This post is dedicated to all financial advisors and every client who get once in contact with a wealth planning specialist.

I once made an analysis for a client how long his assets will be sufficient to maintain his actual standard of living. Given you invest about 200'000 in a mutual fund which should provide you with an average yearly return of 8%. Furthermore you decide to withdraw about 21'000 a year. Due to the high return your assets are exhausted after 20 year instead of 9.5 year.

The truth is shown by picture number 2.