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.
Scott Dauenhauer, CFP, MSFP, AIF