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Moneywise
Updated Jul 10, 2026
Vanguard projects modest annualized U.S. stock returns of 3.3% to 5.3% over the next decade.
Diversifying beyond stocks can help smooth out market swings. Gainbridge offers fixed annuities with a guaranteed rate of return.
Consider alternative investments that can hedge against volatility. A gold IRA with Goldco allows you to reap the tax perks of a retirement account and the protective benefits of gold.
Vanguard pioneered the concept of index fund investing, and currently has a whopping $11 trillion in assets under management. It’s a real heavyweight in the American stock market.
So when the company issues a report about the future of the stock market — it’s worth a closer look. In July, the company published a 10-year forecast for a wide range of asset classes, ranging from municipal bonds to mortgage-backed securities.
But it’s the forecast about stocks that should raise alarm bells for many U.S. retirees. Here’s a closer look at what the report suggests seniors can expect in the years ahead.
Lackluster U.S. stock performance
According to Vanguard, the U.S. stock market is expected to deliver an annualized return of between 3.3% to 5.3% over the next 10 years. That is considerably lower than the previous 10 years. Since 2015, the S&P 500 has delivered an annualized return of 15.26%.
In other words, Vanguard’s analysts believe future performance won’t be nearly as impressive as investors have experienced in recent years, barring a sharp drop during COVID.
The team’s forecast about so-called “growth stocks” is even worse. Vanguard expects an annualized return between 1.9% and 3.9% over the next 10 years. That’s uncomfortably close to the 4% withdrawal rate many retirees depend on to meet living expenses.
If you’re already retired or approaching retirement and your portfolio is overweight U.S. stocks, these forecasts should cause some concern.
Consider speaking with a trusted, pre-screened financial advisor about your specific retirement goals and financial circumstances to help you develop a solid strategy.
If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.
Simply answer a few questions about your savings, retirement timeline and overall investment portfolio.
From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.
You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.
A well-diversified portfolio could help you stabilize your retirement regardless of the shifting dynamics of individual asset classes.
WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.
If you prefer a hands-off, digital approach to building wealth, Vanguard Digital Advisor puts the investing expertise of one of the world’s largest asset managers right at your fingertips.
It takes the guesswork out of investing by building a personalized portfolio for you using Vanguard’s well-known low-cost ETFs and mutual funds — then keeps things running smoothly with automatic rebalancing.
The platform also offers guidance on saving for retirement and lets you set additional goals as your life evolves.
It can even help you think through debt repayment strategies, potentially freeing up more cash to invest toward your long-term plans.
With a minimum investment of just $100, it’s an easy way to get started with professionally guided investing.
For every $10,000 in an all-index portfolio, you'll pay approximately $15 to $16 per year¹.
You can even test-drive the Vanguard experience with no advisory fees for the first 90 days.
Better alternatives
Fortunately, the report also highlights other asset classes that could perform better in the years ahead.
Not all asset classes are facing a bleak decade. In fact, some could outperform. Vanguard’s forecast suggests that U.S. Treasury bonds could deliver annualized returns ranging from 3.8% to 4.8% over the next 10 years. That’s a better return rate than you could get with growth stocks, but with far less volatility and risk.
The firm also expects to see stock markets in developed countries outside the U.S. outperforming. Developed market equities, excluding American stocks, are expected to deliver 5.7% to 7.7% annualized by 2035.
There are already signs of this trend playing out. Canada’s benchmark stock index, the S&P/TSX Composite, has delivered a 23.9% return this year through mid-October. That’s higher than the S&P 500’s 13.8% return over the same period.
Similarly, UBS Group expects $1.4 trillion of capital to rotate from U.S. to European equities in the next five years.
This is where stock picking can become an especially attractive strategy for generating above-average returns. While it can require more work and dedication than simply investing in a broad-based index, there are plenty of high-grade tools out there to help with the process.
For instance, platforms like Moby can help make that process simpler and smoother. Moby offers you investment insights broken down into simple, easy-to-understand language — no jargon here.
Each week, Moby delivers one to three curated stock picks straight to you. Reports are written by a team of former hedge fund analysts and financial experts who spend hundreds of hours per week sifting through the latest financial news and data.
The best part? Moby's picks have beaten the S&P 500’s returns by almost 12%, on average.
What should you do?
It’s worth taking any future prediction of the stock market, even the ones from trillion-dollar fund managers, with a grain of salt. It’s impossible to say if U.S. stocks will overshoot or undershoot Vanguard’s forecast.
Nevertheless, diversifying your portfolio to be less reliant on domestic stocks could be a good idea.
According to Alliance Bernstein’s analysis of Morningstar, U.S. investors hold just 15% of their portfolios in international stocks, which puts them at risk of “home bias” (5). If your portfolio is too domestic, consider adding some international stocks and bonds.
Or, you can look at alternative assets, such as gold.
Gold is a known hedge against stock market volatility, and can be a solid way to help protect your retirement funds from eroding in a recession.
This chart shows the price of gold over the past five years. If you want to see whether opening a precious metals IRA is the right investment to diversify your portfolio, download a free info guide.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA.
A gold IRA allows you to directly invest in physical gold or gold-related assets within your retirement portfolio, offering the tax advantages of an IRA alongside the long-term security of gold. It’s a compelling option for those aiming to protect their retirement savings from inflation and economic instability.
There are specific rules around gold IRAs — and some states have different tax structures for the sale of gold and silver. It’s important to choose the right dealer and custodian to help you navigate regulatory and taxation hurdles.
Depending on the company, they may offer free IRA rollovers and free precious metals for qualifying purchases. Goldco, for instance, can match up to 10% of qualified purchases in free silver.
If you’re curious whether this is the right investment to diversify your portfolio, you can download a free gold and silver information guide.
Earn more without taking on more risk
It can also pay to make sure your hard-earned savings are being put to work in the background. Unlike investments, savings carry a much lower risk of losing their value.
So, getting a solid rate of return on your savings account is a less risky way to grow your wealth with greater reliability and stability.
With a Certificate of Deposit (CD), you lock in a rate up front, often at a higher yield than a high-interest savings account, so your earnings remain predictable even if rates change.
Before opening a CD — or renewing an existing one — a quick check on this CD APY Checkpoint Tool by CD Valet can help you see whether you're getting a competitive rate.
Their platform tracks over 40,000 verified CD rates from FDIC-insured banks and NCUA-insured credit unions nationwide, making it easy to see how your current rate stacks up against the market.
Simply enter your current APY and term length to compare your CD against today's market benchmarks in seconds.
You can also see real-time offers of the best CD rates across the country. Many institutions allow you to open an online account, so you can take advantage of a great CD rate without being located in that state.
Plus, their CD rates are updated continuously, so you can shop, compare and open CDs with ease.
Another option some retirees use to grow savings safely is a fixed annuity. In exchange for a lump-sum deposit, an insurance company guarantees a fixed rate of return for a set term, similar to a Certificate of Deposit (CD) but often with a higher rate.
For some retirees, a fixed annuity from a provider like Gainbridge can help grow retirement savings safely while complementing Social Security and other income sources.
Gainbridge currently offers rates up to 5.45%, more than 3x the national CD average, with built-in principal protection.
Unlike a bank CD, Gainbridge lets you withdraw up to 10% of your balance each year with no penalty, and there are no hidden fees or commissions. Terms range from 3 to 10 years, with a $1,000 minimum to open.
Just answer a few questions to see your guaranteed rate and open an account online in minutes — funding and setup take just a few steps.
Diversify beyond stocks with real estate
For years, some of the most attractive real estate opportunities were reserved for institutions with deep pockets. If you wanted exposure to large-scale developments or real estate joint ventures, you generally needed millions of dollars to get in the door.
Crowdfunding platforms changed that by making it easier to invest in real estate online. But many of these offerings focus on smaller, retail-oriented properties.
Meanwhile, large endowments, pension funds and family offices often take a different approach. Rather than buying small stakes in individual properties, they partner directly with experienced operators that manage everything from acquisition and development to day-to-day operations and eventual sale.
Platforms like Realberry¹ offer exposure to real estate opportunities that have traditionally been reserved for large investment firms and private capital groups.
With a 35-year track record, $3.6 billion in assets under management and $1.6 billion in realized proceeds, the firm invests across multiple commercial real estate sectors, including multifamily, build-to-rent, hospitality, mixed-use and industrial properties.
Because Realberry manages acquisition, development and execution in-house, investors gain transparency and insight by working directly with the firm managing the entire lifecycle of their investment.
The company also controls more than 6,000 acres of master-planned development land across high-growth Mountain West markets, providing access to opportunities that can be difficult for individual investors to source on their own.
Institutional investors have long looked to private-market real estate as a way to help stabilize their portfolios. The asset class offers a mix of potential tax benefits, regular cash flow, a hedge against inflation, and returns that are less correlated with public equities.
Historically, individual investors haven’t had great options for accessing high-quality, private-market real estate.
In recent years, crowdfunding platforms have opened access to a broader demographic, but outcomes often depend on factors like deal structure, platform incentives and the expertise of the sponsor.
Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.
Featured
Residential
Columbus, OH Featured
Industrial
Tobyhanna, PA Featured
Residential
Beverly Hills, MIThese are a few examples of past properties or acquisitions from Lightstone. Explore more investment opportunities when you register with Lightstone DIRECT.
With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.
Read More: 6 headache-free ways to invest in real estate in 2026
A finer alternative
There is also another alternative investment that you may want to consider.
With the current volatility in the market, diversification isn’t just smart — it’s essential. Billionaires like Jeff Bezos and Bill Gates continue to invest heavily in stocks, but they also carve out a portion of their portfolios for assets that behave differently from the market.
One standout example: post-war and contemporary art, which outpaced the S&P 500 by 15% from 1995 to 2025 while showing near-zero correlation to traditional equities.
Until recently, this world was off-limits. Now, with Masterworks, you can buy fractional shares in multimillion-dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires a long-term hold, it offers unique portfolio diversification.
Masterworks has sold 25 artworks so far, yielding net annualized returns like 14.6%, 17.6%, and 17.8%.*
Moneywise readers can get priority access to diversify with art: Skip the waitlist here
*Past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd
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Debt relief program- Securities offered through NCPS, member FINRA/SIPC. Investments in private placements are speculative, illiquid, and may result in the complete loss of capital. See here for more information: https://www.realberry.com/disclaimer/.
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