7% real (10% nominal) is roughly the long term historical average market return. That’s why people use it. Problem is it inherently assumes 100% equity and a more or less infinite time horizon, neither of which are realistic for most investors.
I personally use 4-5% real in my personal rough projections which I think accounts better for less than 100% equities and some sequence of returns risk.
I personally use 4-5% real in my personal rough projections which I think accounts better for less than 100% equities and some sequence of returns risk.
Statistics: Posted by vinhodoporto — Fri Oct 11, 2024 10:47 pm — Replies 51 — Views 5430