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I think you forgot to click the “inflation adjusted” checkbox. The real rate of return is closer to ~7%. Also caveat emptor - past performance is no guarantee o
by teej 9y ago
I think you forgot to click the “inflation adjusted” checkbox. The real rate of return is closer to ~7%. Also caveat emptor - past performance is no guarantee of future results.
- jonknee 9y agoBut the calculator you're criticizing does not adjust for inflation...
- stochastastic 9y agoI think that’s the point. A projected savings balance is misleading without considering inflation, so if the calculator doesn’t make an explicit adjustment for it then there ought to be an implicit adjustment in the rate of return assumption.
- Spooky23 9y agoSays who? Projecting historically low inflation is no less reckless than ignoring it. Imo, you're better off looking at absolute returns and tweaking your expectations based in inflation as itnhaopens.