Estimate Your Rate of Return

When saving for retirement it is important to earn as much as possible on the money you save. How much you earn on your savings will be based on how you invest your savings. While past performance is never a guarantee of future results, you can estimate how your mix of investments would perform by historical standards.

The table below lists some general guidelines for rates of return on different portfolios for long periods of time. The table below can be used to come up with some rough estimates. However, it is important to note that the values in the table are based upon maintaining the exact same portfolio for over 20 years. For a more accurate estimate of your actual returns read our Investing Guides, consider using Guided Pathways, or consult a Financial Planner.

Historical Returns for Different Portfolios*

Type of Investment	Reasonable Estimate*
Stocks only	8%–10%
Bonds only	5%–7%
Short-term investments only	4%–5%
Mix: 80%stocks / 20% bonds	7%–10%
Mix: 60% stocks / 40% bonds	6%–9%
Mix: 40% stocks / 60% bonds	6%–8%
Mix: 20% stocks / 80% bonds	5%–8%

Enter your expected rate of return.

Factors that can diminish your expected returns

Behavior

The number one factor that influences how much your earn on your invesments is your own behavior. Be sure to read our Investing Guides and Behavior Dos and Don'ts to learn how to avoid making common mistakes.

Time

If you are planning on withdrawing money from your investments in less than 20 years you may need to reduce your estimate of your investment returns.

* Based on long-term historical averages. Past performance cannot be used to predict future returns. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.