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4%. 4% is the number. Don’t count on anything over this.
by whiddershins 5y ago
4%.
4% is the number. Don’t count on anything over this.
- mwint 5y agoIs that 4% inflation-adjusted?
- largbae 5y agoUsually yes. In times of inflating asset prices, the value of the investment tends to inflate with it.
- whiddershins 5y agoUsually yes. But … not every year exactly, so it works best when viewed over a longer term.
- jnwatson 5y agoThe next 10 years? 0%. We’ll be lucky if the market is flat in the next decade.
- na85 5y ago10 year treasury bonds are essentially risk free, as they are guaranteed by the US Treasury. Current 10-year yields are a bit less than 2%, so that's essentially your minimum return there.
- kenneth 5y agoAssuming that interest rates remain above inflation, which is already no longer true. What's the point of earning 2% a year when the USD is losing 6% a year in value (and that's likely far undercounted).
- na85 5y agoThe point is it's possibly the most secure investment available, so that's why it's a good proxy for the risk free rate. Whether or not you want to invest at that rate is entirely a separate conversation.