One of the reasons it’s a good idea to form a solid retirement plan is the uncertainty in the markets. But not just the stock markets…
We’ve witnessed absurd calculations about the returns pensions must generate to meet their funding objectives. Like when they use an absurdly-ambitious 7% (or higher) return on investment, for example. We say “absurdly ambitious” because the latest research indicates the next 10 years of stock market returns will be about 8% below Treasury bond returns, which themselves are already offering an after-inflation negative yield.
Continue reading “Americans Have a Bad Case of Retirement Overconfidence”