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This chapter is from the book

Growth Target Zone

Well, perhaps it comes down to this. Those of us who happen to be rich enough might well be able to settle for rates of return in the order of 5%. Such a return will probably result in some depletion of assets over the years, but if we are old enough or rich enough or both, this depletion can be tolerated with little risk of running out of money before we run out of time.

Those of us who are not fortunate enough to be that rich, or who are fortunate enough to have a longer-than-expected life span, may have to plan on either reducing our standard of living over the years or, preferably, increasing our rate of return. This second alternative is not necessarily an easy matter, but we will set as a general goal the achievement of rates of return in the order of 11.25% or higher by the use of the timing and asset-allocation strategies that you will be learning.

In short, the "Magic 20" will become the "Hoped-For 45."

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