Reply to When does contributing to your portfolio start to feel pointless?

Forum Index » Money and Finances

Reply to "When does contributing to your portfolio start to feel pointless?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]10% is insane for a long term average.  Investors that have millions or billions to invest, that have access to a lot more investment vehicles than you and lower fees, are told to expect something more in the 6-8% range depending on how aggressive they are.  For public employer pension funds, the average eoxected long term return is about 6.7%.  The fact you are saying 10% makes you sound very young and not very sophisticated.  [/quote]

10% is without adjusting for inflation, most people assume about 7% give or take when talking about S&P 500 returns after subtracting 3% for inflation. Yeah if you want to be on the conservative side, plan for 4-5%. But it’s not incorrect or stupid to believe 10% is possible. It’s not guaranteed, but also far from unlikely.

If 4-5% was the expectation, then the 4% withdrawal rule in retirement wouldn’t be safe and neither would even 3%.

I think people here just like to be conservative and pessimistic about the markets because it makes them feel smart but this outlook is pretty divorced from reality. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics