Is it realistic to think that index funds will double every 10 years going forward?
I read an article today on Forbes that said this:
The quote is in reference to Vanguard's Target Retirement 2040 fund, which is 90% stocks. Given that my main holdings mimic this fund, I want to be sure that I am positioning myself for a good retirement.The Vanguard target fund will not make you rich, but it will probably leave you capable of paying for bait.
The article goes on to say:
Source: http://www.forbes.com/sites/baldwin/201 ... get-funds/Its performance over the past five years averages to 4.8% a year. That’s not far from what I would expect it to earn, on average, between now and 2040.
Can we expect a higher return than 4.8% per year going forward? This seems on the low side. I know it's only the author's opinion, but what can we reasonably expect going forward?