No. of Recommendations: 0
Greetings, Dan and welcome.

<<I was using the retirement calculator and found that while my current investing strategy will more than suffice if the inflation rate is 4%, but that I'll end up in a hole if it goes up to 5%. What is the historic rate over the last X years? What should my worst-case scenario be?>>

According to my Ibbotson database, the compounded average annual inflation rate for the 50 years ending 12/31/97 was 3.94%; for 25 years - 5.49%; for 10 years - 3.43%; for 5 years - 2.64%; for 3 years - 2.59%, and for 1 year - 1.92%. From that you can pick your own best, expected and worst case. There really isn't an answer to what it "should" be, only what you are comfortable with.

Regards....Pixy
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement