Ryan speaks to what Rate of Return to aim for in retirement.

Rate of Return in Retirement

We always like to think that rate of return is a function of risk. Meaning, that the higher the risk you may want to take, the higher the rate of return might be. On the flip side, the lower the risk you want to take, then the lower the rate of return you should expect. In our professional opinion, a well-diversified and balanced portfolio should yield somewhere between 4-7% in returns.

The stocks and bonds in this current market are in a bit of a storm with interest rates going up at this current time period. With that said, we can take advantage of this for the long-term to actually make it easier to hit that 4-7% return. This is due to bonds paying us closer to 3-5% with higher interest rates, compared to the very low percentages we have been seeing in the past decade.

Rate of return is an important piece of retirement planning. Reach out to us at SRP with any other questions you may have.