Here is an investment / retirement question I've been struggling with. I am not sure which growth rate to use when calculating the future value of my retirement account and future income. I have been using the average 10-year returns of my investments minus fees. Jack Bogle has said, though, that past performance is not indicative of future results. Sounds reasonable enough, considering that most funds have this stated somewhere on their website, prospectus, etc.
With that in mind, I've been playing around with different calculations. I'm figuring 6.75% less fees, which on average will be 2.37% less than my future value. This is because most of my funds have fees of 0.08% or less. The numbers are quite different, though, if I go less than that. If the market returns less than 5% on average, however, I will have to contribute up to 25% of my salary to make ends meet in retirement. Of course no one knows what the markets will do, but I am curious as to how others handle this calculation and issue.
This is the fee calculator I use if anyone is interested: