The next 10 years will be ugly for your 401(k)

For investors and owners of 401(k) plans, the high returns of the past came with a price: lower returns in the future.

By Suzanne Woolley | Updated on October 26, 2016

(Bloomberg) — It doesn’t seem like much to ask for—a 5 percent return. But the odds of making even that on traditional investments in the next 10 years are slim, according to a new report from investment advisory firm Research Affiliates.

The company looked at the default settings of 11 retirement calculators, robo-advisers, and surveys of institutional investors. Their average annualized long-term expected return? 6.2 percent.

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