3 Tips for Creating A Best-Selling App

In today’s technological world, people are always looking for ways to either make their lives easier or make their lives more enjoyable. With the prevalence of smartphones and other mobile devices, both of these tasks are now easier than ever to accomplish thanks to the ever-growing number of apps available. People are always looking for the most current, most useful, and most fun apps to download, making them a very lucrative business. So if you have a knack for coding and have an idea that could take the world by storm, here are three tips for creating a best-selling app that could make you a lot of money.

Improve Upon The Current Apps Available

At our day and age, there aren’t really a lot of truly original ideas anymore. Things that are new are often things that are just tweaks or improvements on something that was useful or original in the past. And according to Tim Ferriss, a contributor to Mashable.com, great app ideas really are no different. He states that one of the most sure-fire ways to create an app that is going to be financially successful is to survey the market for what’s currently available and then create a new and improved version of those apps. The best way to go about doing this is to check apps in a similar vein and look for holes or problems that you could then fix in a better version of the app.

Set Up A Good Pricing Strategy

You may think that once you have an app that you think will sell well, it doesn’t matter how much you charge for it or how you plan to sell it. But according to David Zax, a contributor to FastCompany.com, this way of thinking is one of the biggest mistakes new app creators make. Knowing this, Zax recommends doing a vast amount of research regarding how much, if anything, you should charge for the initial download of the app. In addition to this information, you should also consider if you’re going to have additional content that needs to be purchased within the app or other ways to bring in additional revenue. Having this all nailed down before you go live will help make your financial success much more likely.

Know How To Market Your Product

Once you’ve decided that your app is ready to launch, you’ve got to do more work than simply getting it in an app store if you want to have a lot of commercial success. Benji Lanyado, a contributor to The Guardian, shares that some of the best ways you can get more buzz around the release of your app is to contact various member of the press, post on social media sites, create videos to tease the content within your app, and think of fun or innovative ways to encourage potential users to sign up or download your content. If you’re able to do these things successfully, you should accumulate a pretty steady stream of downloads, which means a pretty steady stream of money.

To make your app idea as successful as it can possibly be, consider using some of the tips mentioned above in your pursuit for the next best-selling app.

Internet and E-mail Safety (and security)

In this blog, let’s look more closely at internet and e-mail scams and security.

Internet
Knowledge is power – and never truer than when surfing the net. The most common risks are viruses, key-stroke recordings, miscellaneous malware and Trojan horses.

Viruses do the same thing to your computer as they do to us – they make it sick; they can even kill it. Key-stroke recording software is installed by hackers and allows them to record all of your keystrokes with particular attention to usernames and passwords – they love banking, credit card and email access the most. Malware is also malicious as it can take many forms: from tracking your internet use patterns to copying files to a remote computer to erasing key pieces of software. Trojan horses get uploaded and then sit in wait – silently for a triggering date or event and then allow the hackers to take control of your computer and use it for attacking other computers.

The only 100% protection against these threats is don’t surf the net! Now let’s get into reality – hardware and/or software firewalls together with anti-virus and anti-malware software.

Hardware firewalls are called routers and they act as a first line of defence between the internet and your computer and are relatively inexpensive to acquire and are not very complicated to install. Software firewalls are generally a second layer of protection after the hardware firewall. Most reputable commercial ISPs (Internet Service Providers) provide this as part of their customer offering and may reside either on their servers or on your computer.

Anti-virus and anti-malware software is sold by several companies (Norton, AVG, Kasperski, F-secure and MalwareBytes to name but a few). Most suppliers offer free versions of their protection suites but remember if it is free, there is a reason! They are in business to make money and the free versions are teasers only. They do help of course, but don’t provide complete protection, so beware of freebies! Running “in the background” on your computer, they analyse every attempt at both inbound and outbound communication over the internet for suspicious software code and either block or delete access to outsiders. You can control all of these functions through a “control panel” that is installed with this software.

Be very selective on the websites that you visit. Some categories are higher risk for spreading these problems than others – dating sites, erotic picture and video sites together social media are the greatest sources of problems – avoid them!

E-mail
Rule No. 1 – if you don’t know the sender or you didn’t sign up for any e-mail notifications from stores or websites, DON’T OPEN IT! The “Nigeria” scams and grandchild scams are run constantly on e-mail as are Lottery scams of various types.
Rule No. 2 – see Rule No. 1.
Rule No. 3 – ensure you have a full-version of both anti-virus and anti-malware software installed on your computer that gets automatic signature updates – preferably daily – to stop evolving threats. If you follow these 3 rules, you are going to be safe 98% of the time.

The final 2% is chain-mail – the electronic version of old chain-letters – if you get one, regardless of the identity of the sender, do not forward it – even if it is from a close relative or friend – don’t!

General
A great reference book on scams is from the Competition Bureau of Canada – The Little Black Book of Scams – click here to get there immediately. The Canadian Anti-Fraud Centre has a website that is all about various scams and identity theft. Click here – Canadian Anti-Fraud Centre Home Page.

Fraud and Identity theft – a common glossary

Unfortunately, identity theft and fraud are among the fastest growing crimes in the world. In 2012, more than 120,000 calls were received and more than 40,000 e-mail messages each month were reported to the Canadian Anti-Fraud Centre! In 2011, credit card fraud alone exceeded $436 million! By contrast, in 2007, TOTAL fraud losses were $14 million. There are many more unreported incidents.

Phishing – An e-mail message that appears to have been sent by a financial institution with which you have business dealings asking for verification of various pieces of information. When you follow the hotlink and answer the questions, the thieves get enough information about you and your accounts to steal your money and perhaps your identity. The financial institutions you deal with do not need to “verify” the information they already have on you. Immediately delete all such emails. Report it immediately to the Canadian Anti-Fraud Centrehttps://www.antifraudcentre.ca, by phone to 1.888.495.8501 or by email to info@antifraudcentre.ca (CAFC) and your local law enforcement department.

Vishing – Similar to phishing above, but the fraudsters call you directly and pose as an employee of a financial institution or direct you by e-mail to call a number. They can even disguise call display so that it looks like the call may be legitimate. Your financial institution does not make calls like these. Ignore the call, hang up and report it to the CAFC and law enforcement.

Pharming – This is a term used to describe what a fraudster or hacker does to redirect traffic from a legitimate website to a fraudulent website without the victim knowing it. The scammer then harvests the data entered by the victim, thus the play on words – farming. Report such items to the CAFC and law enforcement.

Spoofing – This is the term used when a fraudster uses software or some other internet tool that allows the fraudster to mask their real identity by displaying a fake e-mail address or name and telephone number on your computer or telephone. It is meant to both hide who they really are and to trick you into thinking you are either dealing with a reputable business or person but also to give you the impression the call or message is coming from somewhere other than the actual location. Your telephone or Internet service provider have the ability to determine the true IP (Internet Protocol) address or telephone number but they must be informed quickly. They usually only provide this information to law enforcement in the course of an official investigation. Report to the CAFC and local law enforcement.

Shoulder Surfing – Someone hovering nearby while you are entering the PIN for your bank or credit card. If they get your PIN and skim your card (phoney machines used to steal your digital information) or pick your pocket or purse, they can clean out your bank account in no time. They may even use the digital camera feature of a cell phone. Beware of people around you that may be able to view your PIN as you enter it on a keypad. Shield the keypad with your other hand or your body. If someone is aiming a cell phone in your direction when using your cards, block the view of your card and stop the transaction until they’re gone.

Dumpster Diving – An information thief goes through garbage or recycling bins looking for account information. With an old bank or credit card statement, cancelled cheques, discarded junk mail credit card offers and some over-the-counter technology, a thief can open an account in your name and make off with the money. It may take you years to clear your good name. Shred all old bank and credit card statements and any pre-approved credit card offers you receive in the mail. It’s a good idea to do this for any papers you have that contain any information about you other than name and address.

Pump and Dump – A fraudster buys a block of low priced penny stocks and sends out millions of spam e-mails. The e-mails can be quite compelling and look like a hot tip. Those that fall for this actually fuel a demand for the stocks that the fraudster sells at an inflated price, sticking the new buyer with a loss. Ignore all such emails. A good spam filter should block most for you. In addition, always report such incidents to the CAFC, local law enforcement and your provincial securities commission.

If you are a victim of fraud or identity theft, always notify law enforcement immediately and then notify credit bureaus and card issuers as appropriate.

My next blog will go through some other common scams that use fraud and identity theft – sometimes together, sometimes separately, but the damages can be horrendous.

With courtesy to Wikipedia, the Canadian Anti-Fraud Centre, the Canadian Competition Bureau and the Globe & Mail.

Anywhere use of the company Smartphone is great for hackers, not so great for the bottom line

By Terry Cutler

Where technology goes so do hackers.  Where hackers turn up, usually means bottom line problems for companies, and these unscrupulous hackers are already snaking and slithering unknowingly in many cases in the back end of company networks; through employee mobile devices like Smartphones and laptops.

So it is safe to say that where Smartphones go, specifically these devices in the hands of executives, a hacker with malicious intend will follow and with the rate of Smartphone adoption and capabilities; anywhere from access to email, applications, the Internet and company data, executives are using their devices to stay in touch with family and co-workers through social networks, all the time building a larger and larger database, all the time adding data to their applications.

It may be good for business, but the appeal for hackers with mal-intent is obvious.  The build up of data, times the growth in Smartphone usage, means that one-day a massive attack on sensitive company data could have begun its path to destruction through a Smartphone or laptop.

In a nutshell, a Smartphone is a cell phone to make phone calls, but also adds in features that normally would be found on computers or in the past on what was known as Palm Pilots. In the past, the ability to send and receive e-mails, search the Internet and work on office documents was restricted to the office or laptop computer.  The palm pilot could sync with a computer, but for the most part was a secure personal database, known as a digital assistant that stored data. The biggest security concern was losing the storage device and having someone using the information for mal-intent.

So now we can create and edit Microsoft Office documents, download apps with personal and business managers, personal assistants, or driving GPS directions; the list of apps is endless. What these Smartphones can do now, they will be doing twice as much in the near future.

The list of possibilities is also endless for a hacker. What the hacker can do today may also be twice what he or she can do tomorrow. Data theft is at the forefront of these Smartphones because these devices are excellent tools to steal user data.

In 2010, Canadian Mobile Ad Placement revenue grew at a rate of 105% year-over-year, driven primarily by Search and Mobile Display/Sponsorship according to Mobile In Canada: A Summary Of Current Facts and Trends http://www.iabcanada.com/wp-content/uploads/2012/04/IABCanada_MobileInCanada_041012_FINAL.pdf

The study reported almost 85% of Canadians are cell phone subscribers and 45% of the latter have Smartphones. Half of Canada’s Mobile subscribers are monthly Internet users, dominated by 18-44 year olds, mostly using the device for monthly Internet activities, downloaded apps and browsing the study concluded.

So when companies issue Smartphones to employees without security hoping for a bottom line reward, they may be asking for a lot more problems, which can indeed bottom out the bottom line.

 

 

 

 

TANSTAAFL – “free” email accounts – oh really??

Going back in time for this one – due to recent article in Vancouver Sun and other places about a pending class-action suit (at least the plaintiff is asking for CA status) regarding the “mining” of information from emails sent to and from so-called “free” email accounts.

So let’s get off the privacy bit for a minute – how many people REALLY believe that these accounts are made available out of the goodness of the hearts (if any) of these corporations?? Same goes for E-Post by the way!

Remember – There Ain’t No Such Thing As A Free Lunch

Browsers, search engines and all of the other so-called “free-ware” comes with the price that we leave footprints in the sand – crumbs on the forest floor (a la Hansel and Gretel) or whatever. Those bits of information are pure gold to these companies.

They indicate our taste in everything from food to entertainment to clothes to our political beliefs to where we bank to what we read and watch to the news we choose to believe to x-rated websites we view – if you use an internet connection to do ANYTHING there is a trail to and from you to everywhere you go – and back. I hope no-one is really under any illusions to the contrary – and parents need to be VERY aware of their childrens’ usage. BTW, this also applies to texting on cell-phones, iPhones etc. – if it is electronic, there is a trace – just keep that in mind all the time.

All of these corporations sell the information they gleen from our wanderings to other businesses so they can target us with their advertising and also help (at least in theory) designing and creating new products and services.

So what can you do about it – short answer, virtually nothing! There are some commercially available software packages that promise browsing anonymity – but just think about that for a minute – too good to be true?? YES. Nothing can screen you or your on-line presence from someone or some entity that is determined to find out what we are doing on the world of floating electrons.

Another issue is wi-fi security. Unfortunately, many people with wireless/wi-fi connections in their homes leave their networks unprotected completed – no security – or use such simple passwords like password admin administrator etc. – believe it or not. As a fun exercise, take your wireless/wi-fi enabled laptop or notebook with you in your car. Drive around with your wireless/wi-fi radar enabled, and you will see lots of SECURED access points but also a high number of UNSECURED ones. Internet cafes are wonderful and convenient, but remember, you are in a public place using a public connection.

So how is this all about TANSTAAFL – part of the cost we pay, although not in terms of absolute cash, we pay by giving up some measure of privacy. You need to determine the value and worth of your privacy!

When Internet security takes a back seat

By Terry Cutler.

Why is it that those in charge of protecting the company’s security network, that database of sensitive customer data – bank cards, credit cards, bank accounts and personal information – don’t seem to spend the money to protect it? This is a question that is baffling to those in the data protection business, and may be more baffling in the years ahead.

CEOs and Chief Security Officers (CSO) do not always see eye-to-eye on this problem. The CEO is budgeting the overall books, while the CSO is focused on his task, and can only submit for his budget. This is understandable. However, a recent survey (http://www.cioinsight.com/c/a/Security/Information-Security-Views-of-CEOs-CISOs-Diverge-Sharply-418309/) released by Core Security which highlights and demonstrates this separation over the security stance of the same company who has the potential to drop a company in a “click”.

Staggering is the first word that comes to mind after a quick read of this benchmark. Only 15 percent of CEOs said they were very concerned about an attack on their network, and didn’t think their systems were under attack or even compromised. There is a large gap between CEO and CSO thinking.

Sixty percent of CSO’s reported being very concerned about attacks and reported their systems were already penetrated. Yet with all the breach threats filling the news, and the numbers in dollars lost rising with each attack, or even a threat, the report unearthed that 36 percent of CEOs don’t deem it necessary to get a security briefing from the member of their own security team. It is inevitable. With large customer databases becoming the norm with big companies, the norm for hackers is to go after the company. Decide this at the board level, or decide how to fix it later, of course at a loss of reputation and customers and millions.

It isn’t fashionable to call Internet security unimportant, yet CEO’s continue to scoff at filtering money in that direction. This is risk management of the grandest form. One breach can cost millions. As I have written in previous blogs, that extra money may go to training that one employee not to “click”, or maybe not?

It’s the CEO’s call.

When the complacent CEO gets hacked

By Terry Cutler

When that home phone rings at a time of morning when sleep has moved into deep R.E.M., and the text messages start appearing it could only mean one thing to a CEO; there is a problem with the company security net. This could cost millions.

From best-case scenario to worse, you go over it in your head. Best Case? The security team caught a small breach. It isn’t enough to be overly alarmed, but it does warrant a phone call. Worse? Your monitoring system has spotted what security is calling “highly” suspicious activity over the company network. They are addressing the problem.

When the phone is answered you are told it is the ladder and the situation is expected to get worse.

This could mean even bigger money problems. Nasdaq, Sony, Citibank, whos hacks cost millions. Citibank’s hack attack (http://moneywatch.bnet.com/saving-money/blog/devil-details/citi-hack-attack-6-things-you-must-do-now/4769/) in June of 2011 exposed personal information about some 200,000 customers. Since 2005, some 533 million personal records have been exposed, according to the Privacy Clearing House (https://www.privacyrights.org/). Sony’s 2011 hack of its PlayStation now reports that up to 70 million people had their personal data in jeopardy to hackers after a breach in 2011. Sony’s cleanup was estimated at 2 billion dollars.

In the meantime, the overnight customer service representative is reporting more than the usual complaints of unauthorized debits to their credit cards and banks, and your customer service department is overloaded with irate customers.

You’re next move? Admit it: you’ve been hacked.

Three credit card companies are on hold. Enough, you say. You’ve known all along, and on your way to work, the longest drive of your life. The year 2011 has been called the year of the hack, or at least more companies are admitting their security had been breached. Time to minimize the damage. On the drive to the office, you order company representatives to post a notification letter on the website, explaining the situation and assuring customers that the company is working on the problem. Offer credit-rebuilding services and flag unauthorized use of credit cards, and offer free stuff.

As CEO, you are aware of the value of reassuring customers and keeping them as valued customers. It’s the company’s bread and butter. A company’s reputation if founded on how customers are treated, and including them in the problem through notifications will help maintain the established reputation. Your head security consultant meets you at the door. He informs you that the hack is not as bad as first thought. In fact, only a few files were lifted, but the network was breached, and the consultant reminds you that security is not a reactive game, but one with a proactive approach.

What he is saying is budget more money for security – it’s better that way. Or pay the price of a large-scale hack!

The decision is clear, or is it?

Next week: why companies don’t budget for an eventual hack

follow me on twitter @terrypcutler

 

So What Goes in a Full Financial Plan Part 3 of 3

So – now the wrap up of this series.

Financial Planning is intensely personal and clients need to have complete faith and trust in their advisor to make the process work properly, effectively and efficiently. The relationship is the key to success.

It is for this reason, that top planners spend the first meeting just working on laying the foundation for a relationship to grow and blossom – listening is the key of course – the good Lord gave us two ears and one mouth – and good planners and advisors use them in that ratio! This is what as known as a “non-interview”.

I first learned about this concept about three decades ago by reading a book by a fellow named J. Douglas Edwards – “Questions are your answer” – copies are still available in used book stores and on-line – I highly recommend that everyone involved in the financial/estate/retirement planning process, read it – and read it several times. In fact, it is excellent reading for anyone in a sales, marketing and/or management role.

I want to touch on the reporting now – I can hear advisors and planners already saying that if they covered everything I listed in my two previous posts, the final report is going to be 100 pages in length! Well, that depends, doesn’t it ——– on the client.

Some clients are detail-oriented, number crunchers, navel inspectors, etc. – and for those people, a planner can create dozens of reports and many dozens of pages – looks impressive I admit – but of what value to the client?

I learned from studing about and listening to people like Jim Rogers, John Savage, Jack and Gary Kinder, Norman Levine, Charlie Flowers, Don Pooley, Hal Zlotnik, Rick Forchuk, Dick Kuriger, Jim Otar and many others – that simple is best.

In my experience, I have found that the planners who use the longest reports are often trying to impress clients with quantity as opposed to quality. Certainly the attitiudes of the client drive the entire process – including the reporting and some clients do want more details than others – but this is a fine line to follow.

I have found that there needs to be enough detail to illustrate to the client that their goals can be achieved given a certain set of circumstances, what changes they need to make and actions they need to take and I allow the client to determine how that is done. As an example, before I present a plan, it is my normal practice to ask them a few questions first, including: How much time to you want to spend at our next meeting reviewing the plans? Do you want to go over the entire plan in detail, or do you want just a high-level summary and then decide on what sequence to follow before getting deeply involved in the entire report? As part of my interview process, I ask clients very early on to indicate their priorities in dealing with their goals – and regardless of my personal preference or prejudice, I follow the sequence or timing as verbalised by the client – this is critical IMHO.

My preference is to give a high-level overview at the first reporting meeting – typically no more than 3 or 4 pages – I don’t want to frighten them or have them start to think they can’t change anything – spoon feeding in other words. Then the rest is covered over the next two or even three meetings so they aren’t overwhelmed and I use LOTS of pictures and graphs and as few tables of numbers as possible. If they ask for some specific details, of course I can produce them, but I don’t try to bury them.

Last, but not least, as a professional financial planner, it is great to have a plan but unless it is implemented and there is regular follow-up (at a minimum of once every two years) to make adjustments as necessary – the whole thing collapses into a pile of snot with only some wasted money and good intentions left lying on the ground!

Anyway, that wraps up this series – hope you find some of the comments of value or at least thought-provoking – agreement is neither necessary, required or expected! Cheers Ian

Taxation and financial planning – Part 2 of 2

So let’s pick up where we left off last week.

Whether people recognise it or not, wealthy people do pay more total taxes than lower income earners – they like more toys, more vacations, more luxuries – guess what – there are taxes included in all of those items too – but then, to admit that would go against the current 1% versus the 99% protests! The simple fact is, there is no “tax freedom” day – everything we spend goes for taxes or raw materials – everything in between is taxes or becomes taxes in one form or another – but let’s not get depressed about it! How does this impact on financial and insurance/estate planning?

Projecting future tax rates that might apply to retirement income or tax credits that might exist for personal health care is a losing proposition. The same applies to the future impact of estate succession/capital gains or even inheritance taxes (which will come back in the future in one form or another – guaranteed!)

Most software programs in use today around the world for the financial services industry, add compelling statements such as “full income tax T-1 calculation done for each year of your plan” (pardon the Canadian influence – but I are one – and proud of it!!). What rubbish. The only thing that COULD accurately be said is the tax calculations are reasonably accurate for the PREVIOUS tax year – everything else is at best an estimate and at worst, a SWAG.

Canadians want more services paid for by “governments” so the governments have to get more $$ from the tax payers to pay for those services. Remember, there is only ONE taxpayer – that is each person. Businesses don’t actually pay any tax – never have and never will – they are simply conduits to get taxes from tax payers to the various levels of government. Some politicos say we are going to raise taxes on various businesses – how nonsensical! Does anyone seriously believe that the business is going to reduce profits to owners, partners and shareholders to pay the tax? Of course not – they just increase the cost of the item, good or service they sell to…….guess who……. tax payers!! But then, that isn’t nice to admit either! The same applies when businesses are charged royalties for accessing natural resources – the cost of those royalties are simply passed along to the consumer – who is also the tax payer – again! BOHICA!

In financial and insurance/estate planning, all we currently need to address are income taxes – and then only as a best estimate. It is my normal practice to include a large disclaimer relating to tax estimates and then I go further by increasing the projected costs by a further 10%. Why do I do that? I have never met a retiree in need of health care who complained about having too much money available to get the level and quality of care they want. I have never met a widow or widower or orphan or surviving business partner who ever complained about having too much tax-free cash available. And I know all governments are going to need more revenue in the future – and they can only get it from us!

BTW for those readers who may not be familiar with the words SWAG or BOHICA – they come from my past military experiences – SWAG – silly wild ass guess – BOHICA – bend over here it comes again! Cheers.

What happens to Average and CAGR when deposits are made every year?

So let’s go back and do the next problem in looking at averages and CAGR – as noted previously, I am going to ignore Median results as they are completely without any justifiable foundation. So here we have the same rates and sequence of returns with the only difference being the addition of $50.00 to the fund each year. As you would expect, the end result in terms of dollars is higher – no surprise.

However, check out the CAGR – IT HAS DROPPED from the 5.38% in the previous blog! Why – because there is an ever increasing amount of capital and the compounding effect of the ups and downs – particularly the downs, result in a lower overall calculated Compound Annual Rate of Growth – something that most people do not expect.

Year Rate . . . . . . .$1,000.00
1992 . . .7.8 % . . . . . .$1,131.90
1993 . . -4.6 % . . . . . .$1,127.53
1994 . . 29.0 % . . . . . .$1,519.02
1995 . . -2.5 % . . . . . .$1,529.79
1996 . .11.9 % . . . . . .$1,767.79
1997 . .25.7 % . . . . . .$2,284.96
1998 . .13.0 % . . . . . .$2,638.50
1999 . . -3.2 % . . . . . .$2,602.47
2000 . .19.7 % . . . . . .$3,175.01
2001 . . .6.2 % . . . . . .$3,424.96
2002 . .-13.9 % . . . . . .$2,991.94
2003 . .-14.0 % . . . . . .$2,616.07
2004 . . 24.3 % . . . . . .$3,313.92
2005 . . 12.5 % . . . . . .$3,784.41
2006 . . 21.9 % . . . . . .$4,674.15
2007 . . 14.5 % . . . . . .$5,409.15
2008 . . .7.2 % . . . . . .$5,852.21
2009 . .-35.0 % . . . . . .$3,836.44
2010 . . 30.7 % . . . . . .$5,079.57
2011 . .-14.4 % . . . . . .$4,390.91

Average . . .6.84 % . . . . . .$5,907.68

CAGR . . . . 5.01 % . . . . . .$4,390.91

As you can see the difference between the AVERAGE growth rate and the CAGR has now WIDENED to 1.83% – it may not seem like a lot, but in real dollar terms it is! If you re-run this table and substitute the Average Growth Rate of 6.84%, the resulting value after 20 years is $5,907.68 – a difference of $1,516.77 – or an increase of 33.5% over the actual value using the CAGR or the variable growth rates from the table. What a horrendous error rate!!

How can a potential error rate of this magnitude be justified in any financial plan – retirement, estate or any other component?? All I can suggest is that if you are going to use average rates, you will need plenty of E & O coverage within the next few years!

I am going to presume that readers are now satisfied with my statement that using historical average rates for forward-looking assumptions is a fools game – but remember, this discussion isn’t over as we have to examine the impact of inflation and then taxes – then to complicate matters I am going to compare the sequencing of returns during the both the accumulation phase and the withdrawal or decumulation phase of financial plans. More fun and games with numbers – I am going to stay with the same assumed growth rates in this table – but simply flip them end for end – and see what – if any difference this has on the end results!

Cheers