Think of these two factors as your retirement “weather forecast”:
CAPE = Stock market temperature (high=expensive, low=cheap)
Inflation = Cost-of-living pressure (high=ouch, low=smooth sailing)
When to adjust:
✔️ Both high? (CAPE 30+ AND inflation 5%+) → Tighten belt (try 4.5%)
✔️ One high? → Small tweak (e.g., 5% instead of 5.5%)
✔️ Both low? → Carry on, rebel!
Remember that this isn’t about perfection. It’s about avoiding big mistakes when markets get wild.
Pro tip: Check CAPE first (takes 10 secs to Google), then glance at inflation news. Bill calls this the “1-minute retirement checkup!”
👉 Week 10’s session will give you a cheat sheet for this.