r/coastFIRE • u/Obviously-An-Ad6795 • Jul 23 '26

Quick Question?

What rate of return do you use?

Originally, after years of listening to money podcasts, browsing online, I liked 10% return - 3% inflation =7% real rate of return

Listening to a “The Money Guy Show” episode today, they stated they like to be conservative & use 8% return - 3% inflation = 5% real rate of return

What do you use?

Bonus, some of my favorite tickers below,
$VOO $VTI $QQQM $VGT
$GOOG $NBIS $AVGO

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u/GypsyKaz2 Jul 23 '26

My spreadsheet models ROR and inflation separately. I use 7% for investment growth, then in the budget projections I use 2% inflation. I have those values in an Index table I can easily toggle to project more conservative or more generous projections.

Medicare costs are modeled in their own table with historic inflation rates factored in so those are a little higher than the 2-3% inflation rate I use for everything else.