After reading Jason Zweig's column in the Wall Street Journal this weekend (The Intelligent Investor: When Seeking Yield, Don't Get Desperate) I wanted to find the source of a statistic he quoted that I found rather alarming (8.9% The return, after inflation, that individuals 'need' to meet goals). Here it is:
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Investors' Appetite for Gains Exceeds Their Stomach For Risks
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Interesting article. Historical data might support an 8.9% real return over long periods, so maybe not as out of whack as the author implies. I have a shorter horizon so my planning needs 4% real return over the next 10 years. Actually, I could live with 0% over the next 5 years and then 4% through retirement. Those are real returns.
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