What's a good average investment return rate?

[Raiden256]

Ok, so I'm on all these investment calculator websites, trying to figure out things like how much I need to put aside each month for my kid's education, and/or my retirement, and they keep asking these...

I know -- get a financial advisor, but hey, it's midnight on a holiday weekend. 🙂

 

[HappyPuppy]

Ha, ha, ha, there are no guarantees. You invest and you take your chances.

 

[mugs]

Originally posted by: Raiden256
Ok, so I'm on all these investment calculator websites, trying to figure out things like how much I need to put aside each month for my kid's education, and/or my retirement, and they keep asking these...

I know -- get a financial advisor, but hey, it's midnight on a holiday weekend. 🙂

Text

 

[Raiden256]

Obviously there are no guarantees... just looking for averages. Mugs' link seems to indicate somewhere near 12% for investment returns, which is basically what I thought. Anyone think this isn't reasonable to expect, given decent investments?

What about inflation rates?

 

[austin316]

returns on average of about 10-12 percent. inflation of about 4-5.

 

[GasX]

Originally posted by: austin316
returns on average of about 10-12 percent. inflation of about 4-5.

You can use from 8-14% for your investment returns. 14% is using risky investment vehicles with a high pucker factor. 8% is a fairly conservative investment strategy. If you plan with 10 and get 12, you are in good shape...

Inflation should not be above 3% for the long haul.