Quote:
Originally Posted by Peter Gibbons
I would be curious to know what rate of return do you use for you post retirement investment portfolio projection?
It’s the time of the year that I meet with some investment professionals and consider my retirement plans, investments, estate planning, etc. I’ve noticed that many bigger firms (UBS, Merrill, etc) are being very pessimistic in their return projections for even growth balanced portfolios post retirement. Most have assumed overall rates of return below 3% after inflation adjustments. In my personal projections I am much more optimistic in my assumptions of around 6-7% after inflation.
What do you think: am I overly optimistic or are the financial planners overly pessimistic? Something in between? Something else entirely?
I’d love to hear your perspective.
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Merrill will project about 3-4 but keep in mind as a retiree, they will want you strongly diversified and your risk tolerance lower. I enjoy a great relationship with my Merrill guy and they can give you a ton of options and looks as you get near to pulling the plug.