Our conservative portfolios (for short-term goals like a dream vacation) have an expected return of 2-3% per year over a 3 year period*. Our more aggressive portfolios (for longer-term goals like a college fund or a retirement account) have an expected return of 6-8% per year over a 6 year or more period*.


It's important to understand that there are variables that we cannot control. For example, the time frame of your goal and market performance.


Ultimately, what you need to know is that no investing service can guarantee a rate of return (and if someone promises you that, run away!). The key is to make investing a habit. Adding money regularly to your account, even if it's a small amount, will help you reduce risk, and get a better deal in the market.



* Performance disclosure: The expected returns shown above are calculated using a backtest of the actual returns of the daily returns listed by the funds in the conservative or aggressive portfolios offered by Finhabits. The backtest is from January 1, 2008 to May 31, 2016, it includes the same mix of 5 to 11 different ETFs included in the actual portfolios, it uses a daily 3% drift rebalancing, and it includes the reinvestment of dividends and interest. The expected returns are net of all fees. Backtested performance is hypothetical and does not represent actual performance. The performance is provided for informational purposes only to indicate historical performance had the portfolios been available over the relevant period. Backtested performance results have certain inherent limitations.

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