Quote:
Originally Posted by Peter Gibbons
I would be curious to know what rate of return do you use for you post retirement investment portfolio projection?
It’s the time of the year that I meet with some investment professionals and consider my retirement plans, investments, estate planning, etc. I’ve noticed that many bigger firms (UBS, Merrill, etc) are being very pessimistic in their return projections for even growth balanced portfolios post retirement. Most have assumed overall rates of return below 3% after inflation adjustments. In my personal projections I am much more optimistic in my assumptions of around 6-7% after inflation.
What do you think: am I overly optimistic or are the financial planners overly pessimistic? Something in between? Something else entirely?
I’d love to hear your perspective.
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Pessemistic.
People have been saying since 2012 that the market was going to make a correction.
People have been saying since 2016 that the market was going to make a huge correction.
Had you been conservative all these years, you'd have missed some HUGE gains.
Asset allocation is real though. Bonds currently carry little weight so it depends how you have your money divided. If you have decades to retirement, you should be mostly in equities (index/mutual funds for most).