What are Your Assumed Rates of Return?

[Steve O]

Im not expecting an actual "return", all just 0001111001100010010010011100-0100's

I think we could see a rally in stocks and a shift away from bonds, but that's too predictable...

Therefore the best assets are no debt and land and housing and a good attitude in a state like SD where people still believe in the founding principles...

 

[fanmail]

I think a 50/50 portfolio should not expect to make more than 2% real return (2.5% inflation) over the next 30 years.

 

[rbmrtn]

these historical averages are just that. i do not believe that you can assume they will work in the future.

I think that is the issue with long term averages. They work fine for an endowment fund or Berkshire as they essentially have an unlimited time horizon. Most individuals, we have about 30-40 yrs of accumulation and then 20-30 yrs of retirement.

 

[audreyh1]

I think a 50/50 portfolio should not expect to make more than 2% real return (2.5% inflation) over the next 30 years.

I think it's likely true for the next 8 to 10 years, but IMO the following decades are likely to be better.