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Both of you are right.

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The risk free rate WikiWealth uses in the analysis is 4.5%. We decided that a rate below that didn't not make long term sense given the unprecedented moves by the Federal Reserve to lower interest rates to zero. In a year from now, we may have another conversation where you mention that 20 year risk free rates are 6%.

With money this cheap, inflation is bound to move higher and long term interest rates will anticipate that. We don't want WikiWealth's entire analysis to hinge on the up's and down's of one unstable number in an unstable time, so we tried to keep the rate rather steady.

As always, if you want to change the risk free rate on any analysis, just go to the experimental mode. Everything is editable for your eyes only.

WikiWealth


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