I heard about a concept called the 10 5 3 rule, but I'm not sure what it means. Can someone explain the basics of this rule to me, including what it entails and how it's typically applied?
7 answers
ShadowFox
Fri Nov 29 2024
The 10,5,3 rule serves as a straightforward benchmark for investors to gauge their expected returns.
ZenHarmonious
Fri Nov 29 2024
This rule advocates anticipating approximately 10% returns from long-term equity investments.
Elena
Fri Nov 29 2024
For debt instruments, the guideline recommends an expectation of around 5% returns.
Chiara
Fri Nov 29 2024
Meanwhile, savings bank accounts are suggested to provide roughly 3% returns.
SakuraBlooming
Thu Nov 28 2024
By adhering to this rule, investors can have a clearer understanding of their potential earnings.