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Originally Posted by edslunch
For the financial planners among us, what are your typical assumptions about investment rate of return and inflation for a thirty year retirement? I don’t need the certainty of an annuity, just a lower risk mix of securities. I’m not looking for financial advice, just curious what people’s assumptions are at the high-level planning stage.
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Rate of return is a function of your asset mix, but most people over-estimate their return.
For inflation, 2% is a reasonable assumption, 2.5% or 3% if you want to build more safety into your projections.