Monthly Archives: April 2011

Estimating Rates of Return: What Do the Pros Do?


What rate of return can we realistically expect from our investments?
7%? 8% 12?!
This is no academic brain teaser to anyone saving for retirement or a down payment. It’s not easy to get right, and getting it right is critically important.
Guess too low, and you end up with a dour view of your chances of making your financial goal. Guess too high, and you could end up in dire straights.

If it’s any consolation to the amateur investor, the pros often can’t agree on rate of return either. Continue reading