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He barely kept up with historical inflation rates (3%/year). Given the free availability of money in the last 2-3 years, it's hard to say a 20% appreciation on
by sidlls 6y ago
He barely kept up with historical inflation rates (3%/year). Given the free availability of money in the last 2-3 years, it's hard to say a 20% appreciation on his capital is a success. In terms of real dollar value, he likely is losing year-over-year.
- neogodless 6y agoAre you accounting for his spend or only looking at beginning and ending balances? When you retire early, you don't assume you'll beat inflation while also spending some of your principal.
- kelnos 6y agoNo, he says he has 20% more after adjusting for inflation. He has gained 20% in real dollar value. Even if that's only ~3% per year, that's fantastic on no (traditional) income, after accounting for expenses. Regardless, even if he was break-even or negative, that might be ok; most people don't expect their retirement savings to last forever, just until they die.