INVESTMENT CONSIDERATIONS (2 OF 4)
01.Core Concepts
Real Return After-Tax and Inflation Standard Deviation Inflation- Adjusted Returns Historical Returns Asset Class 6.6% 32.0% 9.0% 12.0% Small-Capitalization Stocks 5.0% 20.0% 7.0% 10.0% Large-Capitalization Stocks 0.9% 10.0% 2.5% 5.5% Long-Term Government Bonds (0.50%) 3.0% 0.5% 3.5% U.S. T-Bills N/A N/A N/A 3.0% Consumer Price Index (CPI) • Notice the asset classes that outperform inflation and taxes. • Also notice the variability in returns.