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Let's assume you are 50 years old. During the course of your life time you have managed to save up EUR 300,000. A good friend
Let's assume you are 50 years old. During the course of your life time you have managed to save up EUR 300,000. A good friend of yours has told you about the concept of perpetuities and believes that if you wanted to, you could choose to invest all of your savings in the stock market and earn enough from dividends to retire today and never run out of money regardless of how old you get.
Please answer the following questions
To evaluate if what your friend is saying is true, what information do you need to get?
With the information collected in step 1, do you think your friend is correct?
Do you see any risks in this way of thinking?
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