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Where do I get 14-18% returns so that I can get 7 post tax and inflation real? That’s some crypto bullshit levels of growth

• gruez 4y ago
  Where are you getting "14-18% returns"? The formula in the parent post uses 1.07, which translates to a yearly growth of 7%.
  • tw98521358 4y ago
    You need to need to subtract inflation, otherwise your real increase is negative
    • gruez 4y ago
      right, but is there any reason to believe that 7% inflation is going to continue well into the future? The markets certainly don't think so. They're currently pricing in a 2.33% inflation rate over the next 5 years, measured by the spread between inflation protected treasuries and non-inflation protected treasuries. [1] https://fred.stlouisfed.org/series/T5YIE https://fred.stlouisfed.org/series/T5YIE
      • tw98521358 4y ago
        2.3 is too low. This seems to be based on treasury yields that yield negative real return right now. In order to have v 2.3 you basically need to have 0 for the next 4 years if you average the previous year in.