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Hello there Fools:

I'm starting to face up to making a real retirement plan and am struggling with having to make the usual basic assumptions. Does anyone out there have a take on what to assume for inflation over the next 20-25 years? I'm going middle of the road between conservative and aggressive on this plan right now.

Related question: does anyone have at their finger tips historical data on broad market performance with inflation backed out?

thanks
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Greetings, DREA, and welcome.

<<I'm starting to face up to making a real retirement plan and am struggling with having to make the usual basic assumptions. Does anyone out there have a take on what to assume for inflation over the next 20-25 years? I'm going middle of the road between conservative and aggressive on this plan right now.

Related question: does anyone have at their finger tips historical data on broad market performance with inflation backed out?>>

I'll let you pick the numbers you want to use, but here's what my Ibbotson database shows for periods ending on 12/31/97 for inflation and inflation-adjusted returns:


1-Yr 5-Yr 10-Yr 25-Yr 50-Yr
Infl 1.92 2.64 3.43 5.49 3.94
S&P 30.85 17.15 14.13 7.18 8.83
Long Term Corp Bond 10.82 6.41 7.17 3.78 2.05
T-Bills 3.27 1.88 1.94 1.49 1.01


Regards.....Pixy
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Pixy Did you meanthe returns are already adjusted for inflation and so one would not need to deduct inflation ?
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Tedferg,

<<Pixy Did you meanthe returns are already adjusted for inflation and so one would not need to deduct inflation ?>>

The Ibbotson numbers I cited are net of inflation.

Regards…..Pixy
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