What Is A Reasonably Conservative Real % Yield On Investment Capital To Use For Retirement Planning Purposes?

Retirement Planning Purposes

Retirement Planning Purposes

Retirement Planning Purposes

The numbers you should use for Retirement Planning Purposes is real % total yield is net of inflation. So a 5% total yield with 3% inflation would be a 2% real % yield.

When you are looking for investments for Retirement Planning Purposes with judicious investments in equities, you should expect long term returns of 6% conservatively. That is based on historical trends. Many good mutual funds have returned better than that. Some as much as 16% for long periods of time. But I doubt that in the future that will be the case unless one looks to overseas and developing markets. Some of those however can hardly be considered conservative. A mixed portfolio of 30-40% debt and 60-70% equities is considered more conservative than one of 100% equities. Interestingly enough, studies have shown that such a portfolio will outperform a portfolio of all equities over a long period of time with reduced risk.

 

That of course is all based on historical data. That data might not be appropriate for future investment returns for Retirement Planning Purposes.

 

Retirement Planning Purposes