Just fiddling about with a spreadsheet or two, trying to keep our finances under control, and I found myself wondering what other folks are thinking about likely future trends in interest rates, inflation, and future asset returns might be?
I'm extremely risk-averse and financially pessimistic, so I'm working on 5% inflation, 3% increase in index-linked pension, 0% increase in equity-based investments, and 5% increase in land/property assets, which are earmarked to pay for a nursing home for either/both of us.
Whaddya reckon? too pessimistic - or too optimistic? And what have I forgotten?
