According to an investor study from Natixis…
🎯 Investors expect annual returns to be 11.2%
🎯 78% of these individuals list “Capital Preservation” as their top priority
There is a huge disconnect between what individual investors are expecting (11.2%) and risk tolerance. The long-term returns of a 100% stock (“Aggressive Growth”) profile tends to be less than 11.2% annually and historically long-term market returns have been approximately 7%.
What should an investor expect with “Capital Preservation” listed as their top priority? Certainly not 11.2%.
🤔 The more important question is what rate of return is required to make your plan work?
REMEMBER: Your goals determine your plan. Your plan determines your portfolio.
Information in this material is for general information only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.