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xoers forget yield changes and inflation when planning their retirement
| tarrifs | 05/31/25 |
| Diamond Dallas Trump | 05/31/25 |
| tarrifs | 05/31/25 |
Poast new message in this thread
Date: May 31st, 2025 5:09 PM Author: tarrifs you always see posters say stuff like "XYZ yields 10% and i only spend $100k annually so i can retire on $1 million!"
this is stupid. XYZ will not always yield 10% and inflation will erode your lifestyle. if your portfolio is invested well, assume you can withdraw 2% in the first year and an inflation-adjusted amount afterward. so if you want $100k inflation-adjusted per year, pre-tax, you need to save $5 million. |
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Date: May 31st, 2025 5:33 PM Author: Diamond Dallas Trump nobody here is trying to retire on $1 million except tommy. even disco fries has more than that.
and your portfolio would have to be invested retardedly to only yield a 2% real return net of inflation. your numbers also seem to implicitly assume that the goal is to maintain the entire value of the portfolio through death, but most people aren't trying to die with a NPV of $5 million. |
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Date: May 31st, 2025 5:56 PM Author: tarrifs here's an example of a stupid xo poster. sure you'd have to be an idiot to get only a 2% yield under historical bull markets, but in the future a 2% real yield may well be unobtainable for years on end (http://www.autoadmit.com/thread.php?thread_id=5731930&forum_id=2#48977483) |