**Note** — We’ve had 30 years of falling interest rates.  30 years.  It’s a wild guess to say what the next 30 years of future returns will be; especially for Fixed Income portions of your portfolio.   I’ll be updating this topic with the 2017 metrics as this is a very controversial topic. And when I insert the IPP section for Business Owners I’ll talk about the Pension Style Investing metrics as well.

Here’s what financial advisers are being told they can expect in long-term returns

Link: Here’s what financial advisers are being told they can expect in long-term returns

Extract:  The assumption guidelines for 2016 are as follows:

• Inflation: 2.1 per cent
• Short-term interest rates (T-bills and such): 3 per cent
• Bonds: 4 per cent
• Canadian stocks: 6.4 per cent
• Foreign developed market stocks: 6.8 per cent
• Emerging market stocks: 7.7 per cent

The guidelines include projected returns for three types of investors:

• Conservative (5 per cent short term, 70 per cent bonds, 25 per cent Canadian stocks): gross returns of 4.55 per cent and net returns of 3.3 per cent after fees estimated at 1.25 per cent.
• Balanced (5 per cent short term, 45 per cent bonds, 40 per cent Canadian stocks and 10 per cent international stocks): gross return of 5.19 per cent, net return of 3.94 per cent.
• Aggressive (5 per cent short term, 20 per cent bonds, 35 per cent Canadian stocks, 25 per cent international stocks and 15 per cent emerging market stocks): gross return of 6.05 per cent, net return of 4.8 per cent.

And for reference, here is the 2015 similar article

Projected investment returns: Why these new guidelines are golden

Link: Projected investment returns: Why these new guidelines are golden

Note: There are great graphics in the 2015 article.