3.25% is definitely pretty feasible. Interest rates on bank accs right now aren't a great reflection of supply and demand. But if you look at average returns on

3.25% is definitely pretty feasible. Interest rates on bank accs right now aren't a great reflection of supply and demand. But if you look at average returns on the market, say by looking at a decent first proxy for the market like the S&P 500, well that's one which has a 7% inflation-adjusted (i.e. real return) return in its history. In recent years it's been a bit higher as the market is rebounding. In general I'd assume its on the high end (century of cheap oil and all), but 4% is still a realistic long-term return figure, and so 3.25% is therefore quite doable with a moderate level of risk in a diversified portfolio. (oh and the above is not just inflation-adjusted, but also excluding dividend payouts which aren't insignificant).