Reply to How much to retire at age 55? We are 50

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[quote=Anonymous][quote=Anonymous]According to Standard and Poor's, the average annualized return of the S&P index, which later became the S&P 500, from 1926 to 2020 was 10%. At 10%, you could double your initial investment every seven years (72 divided by 10). In a less-risky investment such as bonds, which have averaged a return of about 5% to 6% over the same time period, you could expect to double your money in about 12 years (72 divided by 6).[/quote]

I think money doubling every 7 years is realistic during your working years when you are mostly in equities, you are contributing money to your savings, you are not withdrawing cash, you are not paying taxes on forced withdrawals (RMD).  In retirement, you are likely not 100% equities, not contributing, withdrawing money for expenses/forced to withdraw and pay taxes.  5% net worth appreciation on average is more reasonable IMHO and not conservative at all.  That's 14.4 years to double your net worth.  Actual return would be higher (6-9%) to account for withdrawals and taxes on RMDs.[/quote]

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