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Historical Rate of Return for Equity and Bond Portfolios
Historical Rate of Return for Equity and Bond Portfolios

(1926 - 2021)

Nancy Gates avatar
Written by Nancy Gates
Updated over a week ago

We encourage you to consider a number of variables when entering rates of return in PlannerPlus.

It's important to know your asset allocation, which is what assets you hold in each account in order to meet your goals. Overall, your rate of return will depend upon whether you hold equities, bonds, and/or cash in each account and what percentage of those assets you hold in each account.

Enter nominal rates, do not adjust for inflation.

The rates you enter in the software will drive the growth of your portfolio in the Planner and affect many aspects of your plan. If you are looking for a point of reference, you might explore the historical returns for your asset allocation, or your personal historical return. Typically you will use your historical average (reduced for any uncertainty you feel appropriate) as the Optimistic Rate of Return.

Historical Rate of Return for Equity and Bond Portfolios (1926 - 2022)

Using US Large Cap Equity and US Intermediate Bonds

Growth

100% Equity (Total US Stock Market)

Average annual return: 10.1%

80% Equity (Total US Stock Market)

20% Fixed Income (US Intermediate Bond)

Average annual return: 9.4%

70% Equity (Total US Stock Market)

30% Fixed Income (US Intermediate Bond)

Average annual return: 9.0%

Moderate

60% Equity (Total US Stock Market)

40% Fixed Income (US Intermediate Bond)

Average annual return: 8.5%

50% Equity (Total US Stock Market)

50% Fixed Income (US Intermediate Bond)

Average annual return: 8.1%

40% Equity (Total US Stock Market)

60% Fixed Income (US Intermediate Bond)

Average annual return: 7.5%

Conservative

30% Equity (Total US Stock Market)

70% Fixed Income (US Intermediate Bond)

Average annual return: 7.0%

20% Equity (Total US Stock Market)

80% Fixed Income (US Intermediate Bond)

Average annual return: 6.4%

100% Fixed Income (US Intermediate Bond)

Average annual return: 5.1%


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