Estimated Long-Term Return

"Over the last 100 years, the S&P 500 has returned, on average, with dividends reinvested quarterly, about 9% per year. Going forward, we estimate that it will return about 200 basis points less, or 7% per year."

That's an example of an estimated long-term return. It's just an estimate or guesstimate. A dartboard. Non-Fifty-Shades brand blindfolds involved.

Why would you need such a thing? Well, if you're a 42-year-old orthodontist and you want to stop having to put your fingers in wet mouths when you're 65 so you can move to Miami with your mistress, then you'll want to make some long-term planning on what half of your net worth will be worth at that time.

You need an estimated long-term return for what your investment in a small capitalization growth fund will likely return over the next 23 years. So you can plan and stock up on dry napkins and sun screen.