3 ms·

The 7% figure they gave is already adjusted for inflation.

• onlyrealcuzzo 7y ago
  Only if you think you're getting 7% returns after inflation, which statistically is highly unlikely. $2.1M is literally $100k compounded at 7% over 45 years.
  • everdev 7y ago
    The S&P typically returns 10% YoY. 7% per year is the historical average adjusted for inflation: https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp https://www.investopedia.com/ask/answers/042415/what-average...
    • onlyrealcuzzo 7y ago
      You can't perfectly time your retirement to match the S&P 500 average. That's the reason your portfolio shifts to bonds as you get older. It's the reason everyone quotes 7 & 8% as reasonable long-term returns for your retirement portfolio.
      • everdev 7y ago
        Right, but if for each of the past 100 years you tracked people who put money in the stock market and held it for 45 years and averaged each of their returns you'd get a 7% YoY return after adjusting for inflation. Some would end up lower but some would end up higher. Nothing is guaranteed, but neither is a job.