The inflation piece is confusing to me to, but I think it does talk about investment. It says retirement is 1.6 million based on expected annual withdraw rate. So I’m guessing that is not the contribution amount but final amount including return on investment. So does that 4.4 million number actually somehow translate into a sub 4 million dollar contribution value? Same with college. If you start investing in college funds at child birth that have 18 years of growth, is that child cost the cost basis, or accrued value at time of spend? On the other hand the home cost includes mortgage interest, but the value of the house will hopefully exceed the cost you put into it.
The inflation piece is confusing to me to, but I think it does talk about investment. It says retirement is 1.6 million based on expected annual withdraw rate. So I’m guessing that is not the contribution amount but final amount including return on investment. So does that 4.4 million number actually somehow translate into a sub 4 million dollar contribution value? Same with college. If you start investing in college funds at child birth that have 18 years of growth, is that child cost the cost basis, or accrued value at time of spend? On the other hand the home cost includes mortgage interest, but the value of the house will hopefully exceed the cost you put into it.