Dr.Crusher
Dryer sheet wannabe
I think I am aiming for a 7% or so annual return. Maybe a bit higher now in our early 30's and bit lower in our 40's. Does that seem reasonable? That's after expense ratios and taxes but before inflation. If I use a 7% rate of return we should be able to retire in our 50's. That's assuming that we can outpace inflation by 1 or 2% a year.
I've read that stocks have returned 9% historically (based on the Shiller's S&P500 data). Is there similar data for bonds? How far back does it go?
I am trying to figure out if we should be 90% stocks 10% bonds or only 80% stocks? Or something else? Thoughts?
(I'm not sure if we'll include other asset classes yet. They seem to be correlated with the S&P 500 minus those high historic returns.)
I've read that stocks have returned 9% historically (based on the Shiller's S&P500 data). Is there similar data for bonds? How far back does it go?
I am trying to figure out if we should be 90% stocks 10% bonds or only 80% stocks? Or something else? Thoughts?
(I'm not sure if we'll include other asset classes yet. They seem to be correlated with the S&P 500 minus those high historic returns.)