newellcr
Recycles dryer sheets
- Joined
- Aug 26, 2003
- Messages
- 224
Hello Folks,
What rates of return do you folks use for the wealth accumulation phase and why do you use that rate? I have been using the 11% historical S&P rate that I handicap by 3% for inflation. My current timeline is 15 years until ER/FI. My thrift plan (read 401k) is invested 90% in an S&P fund, 5% in Wilshire 4500 fund, and 5% in Barclays EAFE fund (developed international). It's been like that for quite some time. It was 100% S&P indexed previously. Even with the recent market, I'm perfectly happy with this mix and I haven't lost an hour of sleep. Hopefully this isn't a case of ignorance is bliss. Time will tell, I suppose.
I was thinking that I would move into a 75/25 split between stocks and treasuries around 5 years our from ER and keep that mix indefinitely.
Thanks,
Chris
What rates of return do you folks use for the wealth accumulation phase and why do you use that rate? I have been using the 11% historical S&P rate that I handicap by 3% for inflation. My current timeline is 15 years until ER/FI. My thrift plan (read 401k) is invested 90% in an S&P fund, 5% in Wilshire 4500 fund, and 5% in Barclays EAFE fund (developed international). It's been like that for quite some time. It was 100% S&P indexed previously. Even with the recent market, I'm perfectly happy with this mix and I haven't lost an hour of sleep. Hopefully this isn't a case of ignorance is bliss. Time will tell, I suppose.
I was thinking that I would move into a 75/25 split between stocks and treasuries around 5 years our from ER and keep that mix indefinitely.
Thanks,
Chris