this post was submitted on 13 Oct 2024
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So if the investment is for inflation, what are you going to survive from?
Historically, investing in a broad-market index fund has seen 8-12% annual returns. Average inflation in the US has been around 2-3%. Subtract another 3-4% for taxes, and you're still making at least 3%.
Anyways, the point is more about the fact how powerful saving & compounding is. Save early in life, and try to not inflate your lifestyle too much, and then you can technically reach financial independence.
You call 3% significant gains? I mean it's better than nothing, but i don't think it's going to be worth breaking one's neck over
I'm not sure anyone called it significant gains?
Anyways, 50% is really just an example to show what can be possible through saving & investing. Saving any amount of money, at a regular rate, can quickly become more than you think, when compounding is in play.