Where do I get 14-18% returns so that I can get 7 post tax and inflation real? That’s some crypto bullshit levels of growth
Where are you getting "14-18% returns"? The formula in the parent post uses 1.07, which translates to a yearly growth of 7%.
You need to need to subtract inflation, otherwise your real increase is negative
right, but is there any reason to believe that 7% inflation is going to continue well into the future? The markets certainly don't think so. They're currently pricing in a 2.33% inflation rate over the next 5 years, measured by the spread between inflation protected treasuries and non-inflation protected treasuries.
2.3 is too low. This seems to be based on treasury yields that yield negative real return right now.
In order to have v 2.3 you basically need to have 0 for the next 4 years if you average the previous year in.
This is my strategy. Global index funds. 7% is what you can expect. Inflation reduces the net yield. Research ways to avoid tax on stocks until you pay out to yourself, most countries have this in one form or another.
"7%" is dead.
7 was a lie anyway.
You missed the chance to include tax and inflation and tax on inflation in your algebra, sir.
He included inflation, and there's plenty of tax advantaged accounts that let you grow tax free
If you invest in a broad market equity index fund like VOO, then you will keep up with inflation. All the inflation has to be reflected in the country’s business’s bottom lines, so it would also be reflected in their share prices.
...if you live in a country with low enough taxation on investments.