Financial 'Experts' - Rate of Return ..........

Almost everyone writing book or appearing on a talk show discussing finances including Dave Ramsey, always uses the 11-12% rate of return for projecting future nest eggs!

They never mention inflation either! I guess the numbers are more dramatic this way.

I've never seen anyone talking about a 3% real return rate.

I guess we have a hard time with reality in this world.

[ats5g]

I was watching a PBS special (here in DC metro area) on retirement planning, etc., hosted by Jonathon Pond (a CFP from taxachussets I think). He actually said not to expect more than 6-7% before inflation from a balanced portfolio of 60% stocks, 40% bonds.

- Alec

[db]

When I use Morningstar to analyze our portfolio:
40% Vanguard total stock index
20% V international stock index
10% V REIT index
25% V short-term bond index
5% cash
it projects a return of 7.6%, along with the likelihood of realizing my goals ($X annually for Y years) after inflation.

db