For years, many retirement plans were built with the assumption that you could expect strong returns on your long-term investments. It was not uncommon to assume that portfolios for younger savers balanced more toward stocks might return seven percent annually, and those geared toward older earners and balanced toward bonds, CDs or other more liquid assets could return four percent or better. These days, stocks are more commonly returning under four percent with projects pointing lower, and Treasury notes are closer to zero.
As Consumer Reports details, that means it will take more savings earning returns over a longer period of time, to provide you with the nestegg you'll need to maintain your lifestyle in retirement. To counteract the lower returns, investors can try to save more, spend less and be watchful of their portfolios. Experts say investors must be willing to rebalance their strategies more frequently and be willing to adapt to changes in the market. If you've done well in the most recent bull market, it may be worth taking some of those gains and making sure they're in place to provide the best returns going forward.
To help your viewers/readers/listeners learn more about how they can plan ahead for lower long-term returns, talk with investment advisors in your area who can talk about the historical statistics as well as the projections being made for the future. They can outline some strategies that could help your audience make the most of the assets they have now, and optimize their savings and investments for retirement.
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