I have been experimenting with some retirement calculators that evaluate the funded ratio. What is a reasonable discount rate to use for the net present value calculations. This is for a 40 year time horizon and I was considering using the 30 year TIPS real yield for my fixed income and the earnings yield on the S&P 500, currently 3%ish for the real discount rate for my equities. Does this sound reasonable or should I be thinking about this in a different way?
Thanks,
Drum