4 ms·
6% after inflation? The problem with 30yr bonds is that it is effectively 2% assuming 2.5% inflation rate. Stock returns have been generally around 10% even aft
by vaidhy 2y ago
6% after inflation? The problem with 30yr bonds is that it is effectively 2% assuming 2.5% inflation rate. Stock returns have been generally around 10% even after accounting for inflation. A good mix is critical and what is a good mix depends on the personal circumstances.
- adam_arthur 2y agoAre you trying to retire with stable cash flow, or grow your wealth? For many, retirement is first and foremost about generating a stable income. A guaranteed lower rate of return is usually desirable over a speculative higher rate of return.
- TheCoelacanth 2y agoCertainly, but a stable inflation-adjusted income. If your income is stable in nominal dollars, then it is constantly decreasing in real dollars.
- snowwrestler 2y agoThe 4% rule, by definition, provides stable cash flow.