5% is assumed return AFTER inflation. You don't think that's possible? Evidence?Originally posted by Sugarphreak
One thing is you are not accounting for inflation.... 50K of passive income might be ok right now, but in 30 Years? Even 10 years from now inflation will hammer it down by quite a bit.
If historicals can be considered something to go by, you might like this. It's a tool that calculates the average S&P return for a period (that you can specify), with and without inflation. Looks like 5% is actually pretty conservative, over the last 20 years its closer to 9% (after inflation). Maybe I don't even need a full mill!
http://www.moneychimp.com/features/market_cagr.htm