Aight, I put on my robe and wizard's hat.
kambusha
joined 6 months ago
For non-Austrian readers
Gu-en tag, mate! Setz another garnele on ze barbie.
I agree with you, it's fucked. It's also the reality we live in for now, unfortunately, until something changes, and I don't see any change coming soon. We're probably more likely to see our first trillionaire before that, unfortunately.
Doesn't have to be 50%, that's merely an example to illustrate the power of compounding & resisting lifestyle creep. If you take anything away, it's to try to save & invest what you can, as young as you can, and to resist the urge to "keep up with the Joneses". That will put you in a much healthier financial position. I don't know your situation, and you don't know mine.
That's sort of the point I was trying to make with an example, but it appears it fell flat. Compound interest and resisting lifestyle inflation, can really help people in the long-run.
The reality is, you'll never be able to time it perfectly. Contributing over time, rather than lump-sum, will spread the risk.
If something does happen to the stock market, we'll all be fucked. Pretty much every country, company, and individual is invested in some shape or form. Pensions, insurance etc.
With my left hand, my thumb starts facing right, and then sort of goes down and towards the left.
Agreed, no investment can be guaranteed. However, average return of s&p 500 over 100 years has been 10%. Average return of an example index-fund, VTI, since inception in 2001 has been around 8%.
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.
Left or right-handed?
Implement the golden rule: cooks don't clean.