Expected bond return assumptions are based primarily on current yields to maturity, which has proven to be the best predictor of future returns for bonds. Expected returns are gross of any taxes including income tax, capital gains tax, and dividend withholding taxes. This video describes how the bond expected return assumptions were derived. This video provides more information on investing in bonds. 10 Year Expected Nominal Annualized Bond Returns Assumptions were last updated in … [Read more...]

Expected common stock (i.e. equity) return assumptions use a forward-looking building block approach based on valuations, dividend yields, and expected corporate profit growth. Expected returns are gross of any taxes including income tax, capital gains tax, and dividend withholding taxes. This video describes how the expected stock return assumptions are derived. This video provides more information on investing in common stocks. 10 Year Expected Nominal Annualized Stock … [Read more...]