Originally Posted by
Buck Rogers
How do you outperform inflation by about 6% a year and wind up with about half of your money due to inflation?
Unless I'm misunderstanding , It appears you make it sound like you will be barely scraping by due to inflation. But if your investments are beating inflation,you will be better off, regardless of what the numbers are.
Because $6M is what my capital plus contributions plus growth ends up at.
$70k a year in on top of current balance, contribution going up by 3% a year (guessing on IRS limits going up off historic trends) and 9.5% growth.
That lands me around $6M at 65 in my 401k (and similar TSP)
But applying historic inflation, that $6M in 2044 has purchasing power of $3.5M today.
At the 4% rule that gives me $140k a year in today's money in retirement. Paid off house. No crazy toy expenses. Add in $20k (2025 dollars) VA disability and $36k in Navy retirement starting at 58, I'll be fine.
But when people retiring in the next 1-5 years with $6+M in 2025 dollars tell me that Ill have $25M+ and they need 2 more years rings hollow.