Re:No, You can't retire rich at 30 if you sell your startup
by jerf on Monday August 23, 2010 @02:59PM
(#1627657)
It's not a terrible thing to do though, because it also reflects uncertainty in your income, albeit in a way that people aren't used to seeing. There is a non-zero chance that 10 million dollars today will end up being 3 million dollars next year, and I don't mean "next year" metaphorically, and I'm not even talking about the nastiness of the current economy, either; that's always true, regardless of the state of the economy, just the odds change.
Re:No, You can't retire rich at 30 if you sell your startup
by webwright on Tuesday August 24, 2010 @01:30AM
(#1629071)
No, he doesn't assume that. He assumes an average rate of inflation with the mean average being above zero, because it's always been that way. http://www.usinflationcalculator.com/inflation/historical-in...
When you're talking about decades of retirement, the compound annual growth rate of inflation is all that really matters.
There isn't clear consensus on inflation/deflation in the near term. While last year saw deflation, a lot of economists think that printing money like we are will cause unusual deflation.
There will be periods of deflation, and many think that one is starting now. It also won't be the last.