Personal Finance

Annual portfolio growth assumption

  • Last Updated:
  • Dec 14th, 2013 8:54 pm
Tags:
None

Poll: Annual average portfolio growth expectation, % after inflation, pre-tax

  • Total votes: 14. You have voted on this poll.
Less than 3%
 
1
7%
Approx 3% (2.5-3.5%)
 
2
14%
Approx 4%
 
2
14%
Approx 5%
 
4
29%
Approx 6%
 
2
14%
Approx 7%
 
1
7%
Approx 8%
 
1
7%
More than 8%
 
1
7%
[OP]
Deal Addict
Feb 25, 2007
1145 posts
563 upvotes
Ottawa

Annual portfolio growth assumption

Curious what annual growth rate for their nest egg (RRSP, TFSA, nonregistered investment account) people use for their financial planning.
To make this reasonably comparable:
- Inflation-adjusted (i.e., net of inflation)
- Pre-tax
- On your overall portfolio (stocks, bonds, mutual funds, etc)
- Net of fees, if applicable
- Long term average, i.e. what you plug in when figuring out if/when you can retire, not what you expect for next year
Thanks!
2 replies
Banned
User avatar
Feb 15, 2008
26318 posts
3197 upvotes
Calgary
I'm buying the stock market indices, which traditionally grow their earnings at the rate of inflation, if not slightly above, for an earnings yield of around 7-8% these days. So I personally don't see why I can't pull, at this point, slightly above 8% real pre-tax.
TodayHello wrote:
Oct 16th, 2012 9:06 pm
...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...

Top