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These are in real dollars, not nominal dollars. Inflation has already been accounted for, for both investment returns and savings. I make no claim as to whethe
by CompelTechnic 8y ago
These are in real dollars, not nominal dollars. Inflation has already been accounted for, for both investment returns and savings.
I make no claim as to whether the price of coffee will grow faster than the consumer price index, or slower, so I assume it matches it.
- pqdbr 8y agoCan you share your spreadsheet? I find it difficult that you can safely earn 0.5% every month over inflation. Using HP12C, a -100 PMT, 0.5i (0,5% over inflation), 480n (40 years * 12) gives me a 199.149,07 future value (FV).
- CompelTechnic 8y agohttps://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp https://www.investopedia.com/ask/answers/042415/what-average... >One of the major problems for an investor looking at that 10% average return figure and mistakenly expecting to realize a nice yearly profit from investing in the S&P 500 is inflation. Adjusted for inflation, the historical average annual return is only around 7% Here is the structure of the spreadsheet (had to rebuild it real quick, didn't save the original): https://imgur.com/a/jOaHUoT https://imgur.com/a/jOaHUoT