As you can see, inflation-adjusted average returns for the S&P 500 have been between 5 and 8 percent over a few selected 30-year periods.
The bottom line is that using a rate of return of 6 or 7 percent is a good bet for your retirement planning.
What rate of return should I expect on my 401k?
Although each 401(k) plan is different, contributions accumulated within your plan, which are diversified among stock, bond, and cash investments, can provide an average annual return ranging from 5%-8%.
What is a good average rate of return on investments?
Put the two decades together, and you get a respectable 8% average annual return. That’s why it’s so important to have a long-term view about investing instead of looking at the average return each year. But that’s the past, right? You want to know what to expect in the future.
What is the average rate of return on investments in 2018?
Over nearly the last century, the stock market’s average return is about 10% annually. That’s what long-term investors in the stock market can expect to earn if they buy and hold their investments over time. Here’s what new investors starting today should know about stock market returns.
What is the average annual rate of return on RRSP?
The consensus was that balanced portfolio returns will range from 5% to 6% on an average annual basis. They also provided estimates of inflation between 1.8% and 3%, suggesting real returns (after inflation) of at least 2% to 3%.