Tag Archives: excahnge-traded funds

Sanity Checking Estimates of ‘Expected Returns’ in Retirement Planning

One of the most important variables in creating an investment strategy to meet a specific goal (such as retirement) is what you assume about the future returns from stocks, bonds, and other available investment opportunities.  Another highly important input to planning is your estimate of the risk associated with each investment alternative.  These estimates of future risk and return will determine how much you need to save, when you can expect to retire, and how much income you can expect in retirement.  Where do these estimates come from?  Continue reading