What Do You Call A Good Rate of Return on Investments?

This is directly from the ⚡️ Lightning Round⚡️, a weekly segment of the show where we answer questions from texts, emails, and meetings with people wanting to reach their retirement dreams.


Get A Summary of More Than Money's Answer to Matt's Question on Good Return Rates

 

Matt was told to expect a 10% - 12% return rate. 

A lot of people expect double digit returns, or have been told to expect that even though it isn't true historically. 

Realistically when you look into the SMP, you're looking at 6%-7% average return. You can do better than that, but the average is 6%-7%.

 

It's more about setting a realistic amount of risk, so you can control the better gains in the good years and the worse loss in the bad years to fit your risk tolerance.

 

But, definitely you have to get 10% to 12% out of your mind, because it isn't realistic. 

 

If you can earn 6-8% as a norm over time you will do AMAZING in the market. But be sure to understand your risk level to have an accurate expectation.