Would you double your Annual Savings Rate from 5% to 10% or double your Wealth Returns from 4% to 8%

By Investment Moats • April 13, 2014

In one of my popular articles where I laid out the simple formula to become wealthy, I provided a list of actions that a wealth builder can take to reach his/her wealth goal. Then we narrowed down to three factors that we can control among this list:

Choosing when to start investing
Increase funding of wealth building
Retire later

Amongst them, increase funding is within your control, but usually you have to make hard life choices. If you cannot fund a large amount to wealth building, you need to ensure that your rate of return is high. How much difference does this two factors, your funding rate and wealth returns matter? Would you double your Annual Savings Rate from 5% to 10% or double your Wealth Returns from 4% to 8% izdTpee

Would you double your Annual Savings Rate from 5% to 10% or double your Wealth Returns from 4% to 8% izdTpee

Vanguard have a great way of presenting this in their beginner investor guide. This is a simulation of a person who starts of with $10k and wants to build up to $500k. He starts of funneling $5k of ......