Monday, January 10, 2011

Bogle talks about stocks and bonds

Jack Bogle, creator of Vanguard Funds and devout indexer, talks about returns on stocks and bonds and asset allocation.   The video is on the the Finance Professor blog and is a must see video for all my students.

Jack is forecasting a return on stocks of around 6-7%.  That seems pretty reasonable to me.  If you're using 12% to plan your retirement then good luck.  You'll need it.