EP 28: Compound Growth: Can I Catch Up Later?

Many of us understand that investing in an appreciating asset results in compound growth of our initial investment. But how does this really work? How can a small sum of money grow to something that can provide financial freedom with little to no effort beyond securing the initial investment? And most importantly, what are the different outcomes when debating whether to invest now or later in life?

Topics Discussed on Compound Growth

  • Concerning statistics on millennial retirement planning
  • Our career timelines as a function of our savings rate
  • Why retirement planning in western societies is increasingly the responsibility of the individual
  • The pitfalls of believing we’ll never retire
  • How compound growth occurs with our investments
  • Shocking outcomes of those who save cash versus those who invest
  • Timeline case study: what happens if I wait to start investing later in life?
  • The importance of “showing up” with our savings
Required working years corresponding to savings rate, assuming compound growth of our money. For assumptions, check out the data source here.
Required working years corresponding to savings rate, assuming compound growth of our money. For assumptions, check out the data source here.

Original Written Post

The Wondrous And Fantastic Power Of Compound Growth (And Why It Doesn’t Pay to Wait)

Compound Interest Calculator

Investor.gov Compound Interest Calculator

Books

Ikigai: The Japanese Secret to a Long and Happy Life (Hector Garcia, Francesc Miralles)

The Millionaire Next Door: The Surprising Secrets of America’s Wealthy (Thomas J. Stanley, William D. Danko)

The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness (Morgan Housel)

Our Investing Strategy

The CC Family Investing Strategy, Part 1: Philosophy and Asset Allocation

The CC Family Investing Strategy, Part 2: Where Exactly Is Our Money?


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