RETIREMENT Primer – #4 TRAJECTORY of INVESTMENTS

Stashing cash is the key to success in retirement – but more powerful are the effects of Compound Interest gained from investments.  

Rolling yearly profits back into the investment has a dramatic effect.  Here’s a quick look:

raw-compound-interest-1

With Compound Interest, you end up with THREE TIMES THE AMOUNT of money after 30 years than you would with savings alone…

When Early Retirement Saga discusses Saga Projections we’re talking about saving ENORMOUS amounts of money by derailing simple, tiny costs over a lifetime. We then further project the radical amplification of that savings through Compound Interest scenarios, which as the chart above shows, will create savings momentum that is just not available otherwise.

By avoiding 2 Nerdbucks coffees a day, you are saving at least $564,000 in just the first 30 years of this practice…. GOOD LORD.  We can run these numbers far beyond 30 years, and usually we do with the “Saga 30-Year-Payout” leg of the projections. Sure, the Nerbucks corporation will happily take over a million dollars cash over a lifetime: they’ll froth the milk, add sugar, and pep up your twenty-cent coffee… Yikes!

I’ve never seen a business advertise like this:

PLEASE, save your money,
compound interest will revolutionize your existence,
thanks for wanting to buy things from us,
but really, it’s not worth it”

Your retirement has a lot of trajectories occurring right now.  Things accomplished today not only affect tomorrow, but they affect WHAT you can do, HOW you can do them, and WHEN you can do these things at many stages down the road.

Just consider these things simultaneously ongoing,
Trajectory of Real Needs
Trajectory of Spending
– Trajectory of Savings
– Trajectory of Investments
– Trajectory of Income Growth
– Trajectory of entering New Investment Stages

To aid these trajectories, what are the best things to accomplish?
1. Taking in new streams of income would be the most incredible addition
2. Creating massive savings, cutting out frivolous B.S.
3. Studying your Investment possibilities to harness either compound interest, or new business ventures that could possibly exceed the great deliverance that compound interest derives.
4. Accepting reasonable risk and development to enter new stages of competence, and extendability, into new investment arenas.

LEARNING – THINKING – DOING
what is best for your future.

The most devastating thing we could do is blow money around, when we don’t own any part of your future.  The second worst thing is to save nothing, and ignore the power of Compound Interest.  The third most questionable thing we can do is stash away money, and let it sit there permanently like a rock collecting dust. But the worst thing we can do, is to be diligent, wise, and savings-minded and then dump all that money into a terrible idea, and lose it all in one quick punch…

Be careful out there – learning the ways of business and investment might be worthwhile.  Don’t put the whole nest-egg at risk…  If you are destined to be successful as a stock broker, or a small business owner, then while you are thinking big, learn on something much smaller.  Few people discuss the devastation occurring all over the stock market, or in the world of small business. Apparently, 90% of people who try to invest in individual stocks will lose money.  Also, 90% of small businesses fail!  Using lower risk mutual funds and working might be the best route, but only you can determine that through experience, learning, and altering course to prevent catastrophic loss.

There are many avenues of success available, but many of them require a lot of hard work, more work than you ever imagine setting out.  Nothing comes easy in Water World, nothing comes free.  If it looks easy, and smells too good, chances are there might be a business-man luring you into a great financial trap!!  So look out, take nothing for granted, and believe little of what you hear when it comes to calculating risk – make REASONABLE choices with your income, savings, and your future reserves! Always plan for loss!

Good luck!! We’ll continue these topics in greater extent.

SAGA can save your friends! Feel free to like and share!

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