Well just as we're breaking out the champagne on equity markets, some more somber, sober news to reflect on. This article from the Globe & Mail speaks to the need to be realistic when it comes to investment returns. The Financial Planning Standards Council has issued guidelines for what investors should consider when it comes to portfolio returns. The number? Drum roll please... is 3.9% net of fees.
Vindication! This is a number (on the low end mind you) that we maintain is achievable for investors long term. On the higher end is 5% net of fees, so investors -depending on their risk profile, should approach retirement with a 4%- 5% return outlook and plan retirement accordingly. Anything above this number will be icing on the cake, portfolio speaking.
Expectations are funny things. Set them too high and disappointment follows, but set them right and peace of mind comes more easily. We are committed to giving our clients peace of mind through knowing their money, and the return expectation for their money over their lifetime. Slow and steady wins the race. Everytime.