Planning investment rates

[jIM_Ohio]

It's pretty painful though to see the differential of ROI rates on our savings. It makes a difference between feeling you're saving enough and not enough. I've been pretty conservative estimating 5-6%.

I use 6% returns for myself, and I rarely factor inflation, because that adds a fudge factor few will ever see until they retire.

When inflation hits us now, we change our spending, because our income does not go up.
In retirement when inflation hits financial pundits actually suggest we will increase income then so we need to factor that into our savings?

I do 6% returns because if I get 9% and inflation is 3%, the 6% has that built in.

[scfr]

I use 3% for both inflation and expected return. At this stage of my life, all I ask/expect/hope for is that my assets keep pace with inflation.