Is no one factoring inflation into their calculations?

  • This topic is empty.
Viewing 12 posts - 1 through 12 (of 12 total)
  • Author
  • #91722 Reply

      I keep seeing 1.5 million or so as peoples estimated projection years way in the future.

      We are estimated at over 5 million estimated for our 401k and another almost 2 million on our IRA’s. And worried still that will not be enough in the future market.

      #91723 Reply

        I wouldn’t even know what to do with 5 million tbh. Still baking my own bread and living in my tiny house 😂 it’d just sit there chillin.

        #91724 Reply

          If you had 1.5 million. It would probably keep up with inflation unless you were crazy spending.

          #91725 Reply

            While those people are almost certainly underestimating what they will need, you are clearly doing the opposite. Your are basically saying you can never have too much. To each their own in terms of lifestyle but I can’t imagine thinking 7m isn’t going to be liveable.

            Perhaps zooming out and little bit and seeing the big picture a little bit might be helpful for your perspective.

            #91726 Reply

              Doesn’t all the projected calculations include inflation? I believe the 4% rule accounts for inflation. Personally, I like to keep it to 3% or even 2.5% to account for unforeseen global issues but you got to take the leap of faith sometime.

              #91727 Reply

                More than half of our net worth is in real estate, perhaps the best hedge against inflation.

                #91728 Reply

                  The projections and withdraw percentages assume your portfolio will keep up with inflation. I had seen a graph, I think by vanguard, showing than we needed at least 30% equities in our liquid portfolios to keep up with inflation based on historical averages.

                  #91729 Reply

                    Who holds your 401k?

                    Fidelity will do projections that account for inflation and I bet other 401 institutions do too. Ask for a financial advisor. You will need to know your current expenses and expected retirement income (pension or ss).

                    Worth a look: Is it worth withdrawing IRA to contribute to 401k as self-employed?

                    #91730 Reply

                      Following the tips and tricks in the book or audiobook Diary of an Early Retiree: How You Can Do It Step by Step, you can retire with confidence that you will have enough.

                      #91731 Reply

                        Inflation has been an issue twice in 50 years…most normal times it’s 2-3%. If we have runaway inflation you will have to cancel those vacation plans.

                        #91732 Reply

                          inflation is important but …if ur house is paid off and your portfolio is invested in the market it should give you some protection…if ur passive income is from rent you will increase it in line with market…just have minimal expenses…and get your income in stable currency…

                          #91733 Reply

                            If $7 million in investments and no debt isn’t enough in the future than you are living a lifestyle that most people don’t need / want to live.

                            Even 30 years from now, I can’t imagine spending more than $23,000 a month with 0 debt and thinking that’s not enough.

                          Viewing 12 posts - 1 through 12 (of 12 total)
                          Reply To: Is no one factoring inflation into their calculations?
                          Your information:

                          Spread the love