The NUMBERS are right. 8% seems a bit high if you are not counting INFLATION which usually runs at an average of about 3%.

Quote from: MDM on July 21, 2015, 09:20:43 AMQuote from: scrubbyfish on July 21, 2015, 09:15:28 AMAm I doing this math correctly?Yes.QuoteAnd is 8% a reasonable assumption in MMM land?It's "not unreasonable". As you know, that number can fluctuate quite a bit from year to year.That is a good question and would be curious to see what other members use. I've been using 7%, my best friend uses 6%. We are both the type who would rather save extra $$ just in case. But there comes a point where we are irrationally conservative. Run the numbers with 7% and 8%. Over a 10 year time horizon, they will not look too different. After 30 years, it can add up to be a noticeable difference.

Quote from: scrubbyfish on July 21, 2015, 09:15:28 AMAm I doing this math correctly?Yes.QuoteAnd is 8% a reasonable assumption in MMM land?It's "not unreasonable". As you know, that number can fluctuate quite a bit from year to year.

Am I doing this math correctly?

And is 8% a reasonable assumption in MMM land?

Quote from: GardenFun on July 21, 2015, 12:00:42 PMQuote from: MDM on July 21, 2015, 09:20:43 AMQuote from: scrubbyfish on July 21, 2015, 09:15:28 AMAm I doing this math correctly?Yes.QuoteAnd is 8% a reasonable assumption in MMM land?It's "not unreasonable". As you know, that number can fluctuate quite a bit from year to year.That is a good question and would be curious to see what other members use. I've been using 7%, my best friend uses 6%. We are both the type who would rather save extra $$ just in case. But there comes a point where we are irrationally conservative. Run the numbers with 7% and 8%. Over a 10 year time horizon, they will not look too different. After 30 years, it can add up to be a noticeable difference. Do you have a separate number for inflation, or is your 7% supposed to be real?I'd probably use closer to 4-5% real, 7-8% nominal, personally, but it all depends on your crystal ball, as we're all just guessing here.