1 | A Future of Lower Returns? | |||
|---|---|---|---|---|
2 | The makers of MoneyGuidePro, a leading provider of financial-planning software, on May 31 lowered its assumptions for how well stocks and bonds will perform in the future. | |||
3 | Previous Assumptions | Future Assumptions | Change | |
4 | ||||
5 | Cash | 3.50% | 3.00% | -0.50% |
6 | Short-Term Bonds | 4.30% | 3.50% | -0.80% |
7 | Intermediate-Term Bonds | 4.75% | 3.50% | -1.25% |
8 | Long-Term Bonds | 4.50% | 2.50% | -2.00% |
9 | Large Cap Value Stocks | 9.00% | 8.00% | -1.00% |
10 | Large Cap Growth Stocks | 8.00% | 7.00% | -1.00% |
11 | Mid Cap Stocks | 8.50% | 7.50% | -1.00% |
12 | Small Cap Stocks | 9.00% | 8.00% | -1.00% |
13 | International Developed Stocks | 8.00% | 7.50% | -0.50% |
14 | Emerging Markets Stocks | 10.00% | 9.00% | -1.00% |
15 | ||||
16 | Inflation | 3.00% | 2.50% | -0.50% |
17 | ||||
18 | * - Returns are before taxes and inflation. | |||
19 | SOURCE: PIEtech Inc. | |||