Reply to What's your "number"?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]For those of you who have done extensive planning (as opposed to "save what I canand hope I have enough when I need it"), what rate of return net of inflation do you assume on your portfolio?  And if it's over 4-5% annually, are you in something other than a mix of stocks and bonds?[/quote]

I usually calculate a 6% return, not taking into account inflation.  It's on the conservative side, but I really started investing in 1999 and that's higher than what I've experienced so far unfortunately.[/quote]

This is smart and not as conservative as you think.  If we get 7% nominal over the next 30 years and less than 3% inflation I'll be pleased ... That equals a 4% annual return in today's dollars.  And that's equity ... fixed income will be more like 1%-2% inflation-adjusted, ie, "real."  Assuming you've got some balance in your portfolio, I think you're being aggressive to assume you'll get more than a 4% real return.  Might happen, but at today's valuation and prospective low economic growth, it's aggressive to assume more for all but the most privileged (ie, better access to opportunity) investors.[/quote]

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