Quote:
Originally Posted by fotze
When trying to figure out how much you need to save, it is always tricky because the models always allow you to enter a rate of return on your investments, like its an afterthought. I'll just slap 7% in here, yet that is the most important number in the whole thing. 3% vs 10% is massive.
and cowperson, what do you mean massive wealth transfer? I am certainly not going to count on inheritance.
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They should really show you the results with a range of returns. Sure, maybe the average is 7% (or whatever) but if mine happens to be 5%, just how screwed will I be? People would save more in that case, I think.
It's the same as inheritances, really. Sure, on average there will be a large wealth transfer, but the average doesn't help you any. It only matters to you if there is wealth being transferred to you personally.