Yoda Says: Save More, Less Risk You Need Take

No, Rick Ferri is not Yoda, but his chart below is making the rounds – and for good reasons. Last month I was speaking at a conference on the topic of inflation and everyone wanted to know what investment they should own to beat inflation – my answer was that “savings” was much more important than the investment decision.

It’s amazing, but if you save 10% of your income and earn only 5% on your money you beat out the person saving 5% but earning 10% – at least for the first 25 years. We need to encourage savings in this country if we are going to solve the retirement crisis already upon us.

Save Early & Grow Rich

Scott Dauenhauer, CFP, MSFP, AIF

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One thought on “Yoda Says: Save More, Less Risk You Need Take”

  1. I have always said that its not what Wall Street does or does not do for the investor, its what the investor does: reduce spending, live a simpler life, save consistently with low costs vehicles diversified broadly in passively through good economic times and bad.
    After several decades, you will have a nest egg.

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