Normally, I focus on the selection of individual investments that hold the promise of the greatest returns over a particular holding period. This is because I recognize that earning an extra percentage point on your investment returns over the course of a lifetime can lead to outsized wealth creation effects. For someone who invests $1,000 per month over a working career, an extra percentage of compounding could have a million-dollar impact.
But it is also true that the net aggregate amount that you save has outsized effects as well. I was reviewing data pertaining to the Silent Generation, which encompasses those born between 1925 and 1945 who are roughly 75-95 years of age. In 2010, it was predicted that the millennial generation would wield more wealth than those in the Silent Generation age cohort by 2020. Now, that date has been revised to 2027, and even then, the figure is … Read the rest of this article!