Quote:
Originally Posted by Fuzz
You are neglecting inflation in your numbers. Over 20 years inflation is 43% higher. So if you think his numbers are twice as high as they should be, well, inflation's got you there.
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I always assume when people talk about retirement they talk in inflation adjusted numbers. So to calculate future value you only add 4-5% return and don’t include 2.5% inflation. The “4%” rule includes an inflation adjusted withdrawal each year.