Most retirement calculators and pension plans target a return after inflation of 5%. Mainstream asset classes will be hard pressed to deliver. Now’s the time to take the 5% Challenge!

 


 

HOW TO TAKE THE CHALLENGE

Step 1

Go to the Portfolio Analysis section of our website to start building your custom portfolios.

Step 2

Click on CREATE PORTFOLIOS. If you’ve created a user profile, you’ll be able to save your portfolios and refer to them later. If you haven’t signed up yet, you’ll be prompted to do so or you can continue as a guest.

Step 3

Select your allocations, then name your portfolio at the bottom left of the screen. The expected return and volatility automatically displays as you build your portfolio. Save and view your portfolio to see how it stacks up against the model and efficient portfolios.

Step 4

You’ve just taken the 5% Challenge! How likely is your portfolio to achieve or exceed a 5% annualized real return over the next decade?

 

 


Articles

Take the 5% Challenge! (or The “Lloyd Christmas” Lesson)

By John West Jim Masturzo

October 2016 | Read Time: 20 min Read

Most retirement calculators and pension plans target a return after inflation of 5%. Mainstream asset classes producing rock-bottom yields will be hard pressed to deliver. It’s time to get real. Take the 5% Challenge. Use our portfolio builder—and our expected returns—to calculate the probability of your portfolio earning a 5% real return.