This Is How Much You Should Expect Your Retirement Portfolio to Return
What do gamblers and financial planners have in common? Both expect the number seven to bring them wealth and riches. Gamblers want to see sevens in the slot machine, while financial planners bank on 7% returns in the stock market.
Any growth forecast for your retirement portfolio must always assume an average rate of return. Mathematically, the growth of your investments can't be calculated without it. And commonly, experts will rely on 7% as that magic number for stock-heavy portfolios. But where does that 7% come from, and what does it mean for retirement planning?
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Source Fool.com
