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savemoresaveoften said
As long as u r consistently beating inflation, you ARE building wealth.
expect 10% annualized compounded return YoY is unrealistic in my mind.  

I agree if one's portfolio CAGR over periods of time exceeds inflation it is growing in real terms on a Before Tax basis, but it will need a few more percentage points to account for taxes. Perhaps 30-40% more than inflation rate. So maybe 4-4.5% nominal growth.

In retirement, an ideal situation would be for one's portfolio to have that 4% CAGR above, plus an additional 4% more to offset withdrawal rate, e.g. 4% SWR draw down methodology. In total, an 8% nominal return to die with effectively the same sized portfolio as one started retirement with. That is not likely if one believes the https://www.fpcanada.ca/docs/professionalsitelibraries/standards/2025-pag---english.pdf?sfvrsn=e15d436d_3 whereby a CAGR of 5-6% is the more likely planning based scenario for a balanced portfolio.

That is okay though since it is expected that a retiree will slowly deplete a portfolio over 30 years of retirement. No one should expect to die with a remaining portfolio that is as large as the one they started with on a real (net of inflation) basis.

Whether one exceeds a CAGR portfolio return of 5-6% nominal depends very much on one's portfolio composition, whether third party managed or DIY, etc., etc. Historically, my portfolio has provided me with a 15 year CAGR just shy of 10% per year. It is not likely to be that high going forward given the current elevated state of equity markets and outsized gains of the last few years.

Are you suggesting the aggregate of your cost of living components has doubled in 7 (10% per year inflation) to 10 years (7% per year inflation)? My data doesn't suggest anything remotely that high.

savemoresaveoften said

Ask Winnie to invest for you cuz her track record shows 10% compounded growth last 25 years ! Oh but wait, it's the next 25 years that matters, i will bet against her 🙂  

Once again - I never invested anything.

I was only maintaining, preserving my wealth via GIC and physical gold.

Yes, my track record shows around 10% compounded growth last 25 years.

From https://www.getsmarteraboutmoney.ca/calculators/compound-interest-calculator/

"Your initial investment of $500 plus your weekly investment of $0 at an annualized interest rate of 10% will be worth $5,417 after 25 years when compounded yearly."

Gold price is around $6,000 now.

I do not predict or expect, that the next 25 years will be the same.

I do not invest, only maintaining, preserving my wealth via GIC and physical gold, that is it.

AltaRed said
Are you suggesting the aggregate of your cost of living components has doubled in 7 (10% per year inflation) to 10 years (7% per year inflation)? My data doesn't suggest anything remotely that high.  

Yes, in my case it is true. I know my prices.
Only the best quality food available, organic, etc - very expensive, especially in the last 5 years. Plus housing, transportation.

If you see in your case, that inflation is around 2% as per government suggestion, that is very good for you. My case is different.

savemoresaveoften said
@Winnie, good for you but it's based on buying gold when it's hovering at the lowest and then selling when it's at the highest. You time the market perfectly, I know I can't.

If someone happen to buy at 2010 when it was close to $1900 and compares to current peak of $4400, the compounded return is closer to 5.5% not quite that 10%.  

Yes, correct.

I was buying gold always from 1985, every year, almost every month.
When I had some money left over, I purchased some gold.

Last time I purchased in 2022, because I set my maximum price $2,500 and decided that I have more than enough gold, will not pay more, than $2,500.

So, that purchase also was a pure luck for me - in 3 years $2,500 increased to $6,000.

Now I'm only spending my wealth, it's time to spend, not save.

Also I do not care now about maintaining my wealth anymore too, because if it will suddenly decrease 2-3 times, I will be quite fine with real inflation 10% for many years.