Be careful of projecting future stock (and bond) returns based on historical averages. According to Bloomberg Businessweek reporting on a study by McKinsey
& Co, market returns will be much
lower over the next 20 years compared with the past 30. The report predicts average annual returns of 4% to 6.5% over
the next 20 years, compared with an annual average of 7.9% in the past 30 years. Check out the graphic "Lowering your sights" at: http://www.bloomberg.com/news/articles/2016-04-27/be-afraid-be-very-afraid-if-you-re-investing-for-the-long-run#media-1
For a more detailed discussion see: http://www.bloomberg.com/news/articles/2016-04-27/be-afraid-be-very-afraid-if-you-re-investing-for-the-long-run
The report's conclusions confirm academic research that projects lower domestic and international stock and bond returns in the coming decades. So, bottom line, we need to save and invest more to ensure a secure retirement.
The term “financial planner” is used by many financial professionals. You should ask any planner what qualifies him or her to offer financial planning advice.
ReplyDeleteA CERTIFIED FINANCIAL PLANNER™ must have passed a rigorous CFP certification process that includes significant education and experience requirements, as well as pass a comprehensive exam that tests their personal financial planning knowledge and skills.
Additionally, CFP registrants must meet regular continuing education requirements (30 hours/2 years) and ethics requirements. You may visit www.CFP-Board.org to check whether your financial planner is a CERTIFIED FINANCIAL PLANNER™.
Financial planning Northwest Ohio
Happy Spring Everyone! Enclosed is an audio podcast we hope you enjoy. Tom discusses the first quarter of 2015 investment results and some thoughts about what we might expect going forward. Steve and Jill review the basic requirements for IRA holders once they turn 70 1/2 and must begin taking Required Minimum Distributions from their accounts. We hope you enjoy listening to the podcast and welcome any comments, questions, or future topics you might find helpful. Disclosure: Please remember that discussions on the podcast are not to be taken as specific investment advice. Always consult with...
ReplyDeleteIRA Northwest Ohio