nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
- Messages
- 4,872
There are 5 fundamental numbers that radically influence your retirement projections.
1) Your initial spending
2) Your income
3) Your capital
4) Rate of return
5) Rate of inflation.
and your control over these numbers decreases as you go down the list. Here are my current assumptions (annually)
1) $30000
2) $15000
3) $750000
4) 4%
5) 3%
The worry is that numbers 4 and 5 are most dependent on factors out of your control. If you can beat the market or can live with risk you have some control over your rate of return, but you're not immune to economic conditions and interest rates - and inflation is the real joker in the pack.
So what are your numbers?
1) Your initial spending
2) Your income
3) Your capital
4) Rate of return
5) Rate of inflation.
and your control over these numbers decreases as you go down the list. Here are my current assumptions (annually)
1) $30000
2) $15000
3) $750000
4) 4%
5) 3%
The worry is that numbers 4 and 5 are most dependent on factors out of your control. If you can beat the market or can live with risk you have some control over your rate of return, but you're not immune to economic conditions and interest rates - and inflation is the real joker in the pack.
So what are your numbers?
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