What return should a 35Y old use when planning for retirement?

 What return should a 35Y old use when planning for retirement?

Planning for retirement is an important and smart thing to do, especially when you start early. The return rate you should use for retirement planning depends on several factors, such as your risk tolerance, your investment portfolio, and your time horizon.
One way to estimate the return rate is to look at the historical performance of different asset classes, such as stocks, bonds, and cash. However, past performance is not a guarantee of future results, and you should also account for inflation, fees, taxes, and market fluctuations.
According to some sources a realistic rate of return for retirement planning is between 6% and 7% before inflation. This is based on the average annual returns of the S&P 500 index, which is a broad measure of the U.S. stock market. However, this rate may vary depending on your investment mix and your personal situation.
For example, if you have a more aggressive portfolio that includes more international stocks, you may expect a higher return rate of 8% or more. However, this also comes with higher risk and volatility. On the other hand, if you have a more conservative portfolio that includes more bonds and cash, you may expect a lower return rate of 4% or less. However, this also comes with lower risk and stability.
Therefore, you should choose a return rate that matches your risk profile, your investment goals, and your time horizon. You can use online tools like retirement calculators to help you estimate how much you need to save and invest for retirement based on different return rates and scenarios.
I hope this helps you with your retirement planning. If you have any other questions or need some inspiration for your future plans, feel free to ask me anything. 😊 #return #planning #retirement #returnrate #risktolerance #investmentportfolio #timehorizon Ashu Bagri #ashubagri Ashu Bagri
For the time being I am a freelance in stock market of India looking for job opportunities. Feel free to message me