AAPL - The Retirees' Dividend Portfolio - John And Jane's June Taxable Account Update: The Danger Of Making Assumptions
Introduction
Assumptions can be a useful tool when trying to examine the impact of a hypothetical scenario, especially when investing. For instance, it would be necessary to use assumptions when forecasting expected dividend income. When I perform a task like this, I like to establish a range that I can reasonably expect will occur.
- Worst-case scenario
- Baseline scenario
- Above-average scenario
The point of making different assumptions is to build a range that we expect our true scenario will fit into. I consider these type of assumptions to be useful because its primary goal is to