The calculations assumes the hypothetical growth of $500,000 over 25 years with annualized returns of 5% and 8%. The returns are for illustrative purposes only and do not represent actual investment returns, trading activity, or performance. The increase of 3% may be achievable by investment advisors who implement best practices and strategies for serving their clients.
Specifically: suitable asset allocation using broadly diversified funds / ETFs, cost-effective implementation (expense ratios), rebalancing, behavioral coaching, asset location (allocation of assets between taxable and tax-advantaged accounts), spending strategy (withdrawal order), total-returns versus income investing.
A link to the white paper supporting this claim can be found below. Foundry Financial believes are firm aligns with these best practices by offering commission-free, low-expense-ratio ETF trading, rebalancing, and tax advantaged accounts as described in the study. This is not a guarantee of returns, but simply building out the information from the Vanguard study.