lowering nominal rate of return on regular assetsSubmitted by morgancharles@e... on Fri, 10/14/2016 - 10:49
Without changing anything else, when I lower the nominal rate of return on my regular assets (say from 6% to 4%), my smoothed standard living for adult (and thus discretionary spending) goes up! And the more I lower the nominal rate, the higher it goes up.
That seems very odd. Can you explain? thank you. Charlie