A few days back I wrote about “Am I saving enough?” Thank you for all your comments. I am just afraid that those people with their benchmark savings ratios are not really representative of the regular guys.
Could it be that those who do save much less right now did not dare to comment at all?
And would you consider those with more than 50% savings as “greedy for retirement”?
The harsh truth is that the most important drivers in the growth of your assets are how much you save and – above all else – time. And saving requires discipline over a long time.
If you want a get-rich-quick investment strategy, consult the snake oil salesman. But be aware the side-effect might be that you get poor quicker.
The single most important thing you can do to achieve financial security is to begin a regular savings program; to start it as early as possible and let the compound interest perform its magic.
Because the only reliable route to a comfortable retirement is to build up your nest egg slowly and steadily.
Like growing up, which takes its time as well and cannot really be accelerated with “get-tall-quick-potions”.
As I have written earlier, the best bet to grow your nest egg faster than the inflation is in the securities market.
Watch out though: The securities markets is like a large restaurant with a variety of menu choices suitable for different tastes and needs. There is no one single investment that is best for everyone. Every investor must make a trade-off between eating well and sleeping well.
Higher investment rewards can be achieved only at the cost of substantial risk-taking. So what’s your sleeping point? Finding the answer is one of the most important steps you must take.
With the risk of repeating myself, do look into ETFs on broad-based market indexes for your long-term investment horizons. Statistically, they beat the majority of the Mutual Funds or Unit Trusts and they are way cheaper.
When it comes to betting on a sure thing, greed trumps common sense and makes the bet irresistible. That’s why scams still survive. But hopefully in future without your participation.
Keeping your money safe for the long run has gone from being a luxury to being an absolute necessity.
“The true key to becoming rich is patient saving starting today and an understanding that wealth accumulation happens over the course of a lifetime.” — Warren Buffett
“You can’t have everything. Where would you put it?” — Stephen Wright
“There is enough in the world for everyone’s need, but not enough for everyone’s greed.” – Frank Buchman