Portfolio For 2019-2028

One thing that students seem to really get interested in during class are market returns and portfolios. Recent commentary from the well-known investment advisory and mutual fund company Vanguard can provide some food for thought. First, notice that Vanguard estimates the annual return on U.S. stocks will be 4 to 6 percent over the next decade. This is significantly lower than the historical annual return of about 12 percent. Second, Vanguard is recommending that investors allocate 40 percent of equities to international stocks, up from the current recommendation of 30 percent. The reasons for Vanguard's recommendation is based off lower fees for international investing, resulting in higher returns for investors, and the company's projection that international stocks will outperform domestic stocks over the next decade.