Reply to When does contributing to your portfolio start to feel pointless?

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[quote=Anonymous][quote=Anonymous]“If 4-5% was the expectation, then the 4% withdrawal rule in retirement wouldn’t be safe and neither would even 3%.”

This. Also, if they ACTUALLY expected 4-5%, wtf would they be investing in stocks at all? Pre-pay your mortgage, and just buy a bunch of CDs.[/quote]

I’ll answer this. I use 5 percent for projecting investment growth because I don’t want to plan as if I’ll have more money than I actually do. But that doesn’t mean I expect stocks to actually only return 4 percent, in which case you’re right that paying off my mortgage and buying CDs would be a better strategy.

Based on our current savings rate and our current assets, I’m expecting to have about $7 million when I’m expecting to retire. If I used 10 percent for those calculations, I’d expect to have about $13 million.

Either way, it’ll be plenty, since I anlso haven’t bothered to calculate how much we’ll get from Social Security. And if we find ourselves with more than we expect, I can give it to charity or leave it to our kids. I really don’t see the harm in being more conservative with this stuff. [/quote]

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