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.
The best investment book I have ever read is, "The Little Book of Common Sense Investing" by Jack Bogle.
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