I'm going to check out the video but the problem with Real Return Bonds is the rather low returns that they provide. It would have been fantastic to buy these bonds when they were yielding 3% to 4% in the early part of 2000. For a long time now, these bonds are yielding 2%. To earn just $20K before taxes, investors would need a nest egg of $1 million. Clearly, saving such a large nest egg is beyond the capability of most people.
It is true that stock returns even over the long-term could fall within a wide range of possibilities. Still, a real return of 2% seems to me to be a low hurdle for stocks to overcome, especially now that stocks are much cheaper than they were at the peak. Just the dividend yield on the major indices is much higher than 2%. It is highly likely that stocks can be expected to handily beat real return bonds going forward.
It is true that stock returns even over the long-term could fall within a wide range of possibilities. Still, a real return of 2% seems to me to be a low hurdle for stocks to overcome, especially now that stocks are much cheaper than they were at the peak. Just the dividend yield on the major indices is much higher than 2%. It is highly likely that stocks can be expected to handily beat real return bonds going forward.