4 ms·
This 7% being thrown around is not a real return. Adjusted for inflation you’d be lucky to get 4%, assuming you are not collecting when the market is tanking.
by mrhappyunhappy 8y ago
This 7% being thrown around is not a real return. Adjusted for inflation you’d be lucky to get 4%, assuming you are not collecting when the market is tanking.
- FabHK 8y agoYes. My claim is that the situation is exacerbated by the fact that you pay taxes on the nominal return; in other words, you need to "pay" inflation out of after-tax return. Thus, your real after-tax return is minuscule; and you should, in my view, calculate only with 2% or max 3% sustainable withdrawal rate to be prudent.