No. of Recommendations: 1
pepeyperson asks,

intercst, could you explain a little how the figure include inflation so that I can understand it. It seems to seperate inflation as I'm trying to do goes against your findings where it's included. What real return do you try to achieve to ensure you could withdraw 4% if so desired?

Over the 130 year period the REHP examined the S&P500 had a median return of about 9.5% per annum for 30-year holding periods while inflation had a median of 2.5% per annum for the same 30-year holding period. That would give you a targeted return of about 7% per annum.

intercst

Print the post  

Announcements

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.
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.