Part 7/8:

At PWL Capital, the emphasis is on employing data-driven expectations for stock returns in financial planning and wealth management. Using historical global returns while factoring in current market valuations leads to a more credible expected return of approximately 4.62% real, or 7.24% nominal, assuming 2.5% inflation.

The implications of assuming a 10% return are substantial. Differences in expected returns can significantly affect retirement planning, savings, and overall investment strategy.