Calculating investment returns: Actuarially speaking, 6% is a good rule of thumb.

[EricL]

(10-01-2013, 03:24 PM)cannew Wrote: Here's an article which suggests a return of 6%.

http://business.financialpost.com/2013/0...-of-thumb/

My dividend income on my YOC is just below 6% and rising, so why should I worry about future returns, mgt fees, inflation or re-balancing.

Note that there is no mention of dividends or dividend growth.

I expect my income to grow at least twice that rate between reinvestment of dividends and increases in dividends declared by companies I own. I guess there's something to be said about under promise and over deliver?