With summer coming to an end it’s a good time to revisit your retirement plan. When analyzing your plan it doesn’t make much sense to assume straight-line returns on investments. Many plans do this and it’s not realistic. In order to complete a comprehensive plan, you need to simulate both better and worse investment outcomes.

Historically U.S. stocks have returned +9% annually. During the past decade U.S. Stocks have compounded returns annually at better than +14%. 

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Based on current valuations and economic conditions of both stocks and bonds the consensus is that returns over the next decade will be significantly lower. Stocks are projected to return close to 6% annually while bonds are expected to have a total return of approximately +2.5% annually. Using these assumptions, a balanced portfolio (60/40) will return approximately 4% annually for the next decade. Longer-term the projections should be much better. 

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At Chatham Wealth Management we create a customized financial plan and run it through a thousand simulated performance outcomes. The end result will give our clients a probability that they will achieve their goal of living into their 90’s in the lifestyle they desire.

Would you like a complimentary portfolio review? Contact us (800) 472-8086