2, will net approximately $500,000.00. Approximately 65 % of all retired persons retire with an annual income of less than $20,000.00 (Money 1997). This is one good reason for starting at an early age and to be able to enjoy your retirement. With inflation at approximately 3 % a year and increasing the dollar will be worth less tomorrow than today. Process of EvaluationTo find funds with high gains or losses, determine the average, range and standard deviation of each fund. The results are in the following Table: Table 1. Average and Standard Deviation Comparison AVG%STDRangeS & P16.1511.3834.80CMI14.288.2927.60C110.754.1615.40 C212.505.7021.70S114.156.9719.30S213.309.5027.40M115.438.8028.90M212.5021.7023.70B114.979.2027.80B214.647.5023.30A117.8012.3035.70A216.9412.4039.60G117.8315.5055.60G218.0318.4059.70A person wanting a 15 % annual return would take into consideration what funds averaged 15 % and over. The average will not guarantee that you will make the 15 % every year, it is only reflects how well you will do in the good and the bad years combined. The return for the S & P over the same time period was an average of 16.15 % with a range of 34.8 and a STD of 11.38. The Capitol Market Index was an average of 14.28 % with a range of 27.6 and a STD of 8.29. By removing any funds with an average that fell below the Standards & Poor’s, and Capitol Market Index, this would narrow it down to funds that didas well as the market or better. The funds that fit this requirement are M1, A1, A2, B1, G1, and G2. We now would want to look at the range and STD. Data varies dramatically, one range almost 60 points. In this data set the riskier funds have a greater range of values, since the ranges may have been caused by an isolated year that was good or bad. By removing any funds with a high range and standard deviation we can narrow the selection down to M1, A1, and A2. By reading the prospectus for these funds, will help to narrow it down...
