The answer is that we really don't know. We can use a return rate base on historical data, but similar future returns isn't guaranteed. The probability of achieving future returns goes up the lower the return rate. So a 4% aveage yearly return rate is more likely than 7% and 10%.
Great video. The only issue I see is this looks to not be inflation adjusted. So the figures in your 50s will be materially lower. Even if you assume that the CAGR is inflation adjusted and you are expecting a 10% return which is 8% after adjusting, that would also mean the income increases of 2% are as well. Which would mean you are actually getting 4% increases each year which is a little bit harder to justify. Not saying that is uncommon at all, my company does a 4% salary adjustment each year to count just for that. Though, I wanted to mention so people realize that caveat. Nonetheless, it really was an informative video. Thanks for the content.
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The answer is that we really don't know. We can use a return rate base on historical data, but similar future returns isn't guaranteed. The probability of achieving future returns goes up the lower the return rate. So a 4% aveage yearly return rate is more likely than 7% and 10%.
Exactly, do not act. Buy a new car each year and leave today
Of course. Nothing in the future is guaranteed... That doesn't mean we don't plan and take the average though.
Great video. The only issue I see is this looks to not be inflation adjusted. So the figures in your 50s will be materially lower. Even if you assume that the CAGR is inflation adjusted and you are expecting a 10% return which is 8% after adjusting, that would also mean the income increases of 2% are as well. Which would mean you are actually getting 4% increases each year which is a little bit harder to justify. Not saying that is uncommon at all, my company does a 4% salary adjustment each year to count just for that. Though, I wanted to mention so people realize that caveat.
Nonetheless, it really was an informative video. Thanks for the content.
Utube post is very misleading. No one really knows.
Thanks biden 🙄
tf?