Advisors: What are you doing to manage client expectations?
…With inflation contributing a significant portion of investment returns historically (except the last 20 years or so) it’s hard to justify a nominal return beyond 6%. The Financial Post does a good job explaining how to get to this rate in a guest column by Morneau Shepell chief actuary Fred Vettese from 2013. Yet many advisors are want to trot out double-digit equity returns when making a case with clients.
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