Updated: May 9, 2016
If you’re one of the many investors counting on a 7% average yearly return from your portfolio—or better—you’re putting your retirement at risk.
You’ve probably heard this 7% figure before. It’s gospel for many financial planners, and even Warren Buffett brings it up from time to time. It’s the S&P 500’s average annual return, adjusted for inflation, between 1928 and 2014.
With a time frame like that, it seems like a safe bet, right?
Wrong. Because over the next several decades, we’re way more likely see average yearly returns of 4% to 6%—and probably toward the lower end of that range.…