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How to estimate a future rate of return on your retirement savings

wsj

4 min read . Updated: 08 Sep 2021, 12:39 PM IST Glenn Ruffenach, The Wall Street Journal

Given that inflation has averaged about 3% annually since the early 1900s, the real rate of return on stocks and bonds, respectively, is closer to 7% and 2% ( Photo: iStock) — Given that inflation has averaged about 3% annually since the early 1900s, the real rate of return on stocks and bonds, respectively, is closer to 7% and 2% ( Photo: iStock)

Retirement calculators ask for that crucial number. Here’s how to come up with one

I’m approaching retirement, and I’m using several online calculators to see how my nest egg might hold up. Each tool asks me to enter a “rate of return" on my investments. What’s a reasonable number? How do you figure out what your savings might earn in the future?

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