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!

 

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