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peteyperson asks,


I've seen last decade inflation of around 3.5% here in the UK, very similar to the States. Prior to that it was again very close to the 5.5% for the last 25 years averaged out.

So I add the 4% real return to the inflation figure (whichever one you rely on) to see what return I need to achieve.

If you do not start with the 4%, then how do you figure something that you can rely on?

Why not take the Safe Withdrawal Spreadsheet and replace the S&P500, 3-month commercial paper, and CPI data with the equivalent indices from the UK. Then you won't have to guess whether you need a 4% return or inflation is 5%, you'll have te actual data for the last 100-plus years to make the decision.

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