It’s always a version of the same question: “How much do I need to have saved in order to retire?” As planners, we are able to run calculations ad nauseam of amounts currently saved, future savings and annual return assumptions to project retirement needs.
Investors are often more focused on hypothetical rates of return than any other variable in the calculation. What some fail to realize is the power of setting aside more today. The article below hits the nail on the head – real wealth comes from systematic saving until you have reached the point where compound interest takes over, which usually happens 15-20 years into your retirement savings.
A few takeaways:
- The amount you save at the start of your career is much more important than focusing on ticks in the market.
- The greatest investment strategy in the world means nothing if you have no capital to invest in it.
- Since no one has total control over market returns, or the timing of those returns, focus your energy on what you can control – your savings.
