Quote:
Originally Posted by V
Hey, what kind of inflation percentage should you be using to project your present value of savings. For example, if I retire in 25 years from now, and I assume 3% inflation between now and then, my $1,000,000 is only going to be worth $477,000.
I did a quick google search, but I haven't seen what the experts would say is a reasonable assumption for inflation.
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3% is probably reasonable. I use 3.5% modelling, but you don't know what it'll be until you get there, when it's too late to change anything.
Run it with a few different numbers (ie 1%-6%) and see if that would change the decisions you're making now.