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Subject:  Re: Income Planning Assumption Date:  6/5/2007  3:03 PM
Author:  iamdb Number:  57785 of 87979

If you mean by income expected return on investment, has charts that show expected return and several other guidelines based on fairly long term historical data for portfolios ranging from all equities to all bonds in 10% increments. IIRC, a 60% equity/40% fixed-income portfolio has historically returned about 8.5%. I think a 60/40 split is usually characterized as moderate risk, and is commonly used by large institutional investors.

While there are folks who argue that the past is no guarantee of the future, over a long enough period of time and with broad market indices, you can expect historical data to reflect the kind of perturbations likely to be encountered in the future. So I use the charts Vanguard shows as a guideline.

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