Not quite a crystal ball (but still pretty good)Apr 08, 2021
In an earlier post, I discussed taking stock of our current financial lives by setting up an annual calculation of net worth.
This week, I want to encourage you to glimpse at your financial future.
There are many ways to do it, but the simplest is to use a compound growth calculator to determine whether your investments (rates of contribution and returns) are sufficient to help you achieve your financial goals by a certain date.
There are many great articles covering compound growth because it is a central tenet of wealth creation. However, the best way to understand compounding is to simply explore a calculator using figures from your own life and then play with combinations.
Retirement at different ages: 55? 60? 65? 70?
Annual contributions: $50,000? $100,000?
Different investments: stocks (~7%) or real estate (~12%) or bonds (~2%)
Have some fun exploring the different options!