The dynamic effect of saving more

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Most calculators (and advisers) don't adjust this key figure once saving has begun.

Blog post discussion at http://wp.me/p2Oizj-sq

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The dynamic effect of saving more

  1. 1. Concept: Standard of Individual Living (SOIL), and interaction with Saving More SOIL (Current) Lines cross = When can retire Age Portfolio Balance
  2. 2. Concept: Standard of Individual Living (SOIL), and interaction with Saving More SOIL (Current) Before retirement Lines cross = When can retire Age Portfolio Balance When save more: 1) Lines cross SOONER since saving more increases portfolio balance (everybody; static)
  3. 3. Concept: Standard of Individual Living (SOIL), and interaction with Saving More SOIL (Current) Before retirement Lines cross = When can retire Age 2) SOIL lowered because Money Saved, not spent = Can retire even sooner (few; dynamic) Portfolio Balance When save more: 1) Lines cross SOONER since saving more increases portfolio balance (everybody; static) New SOIL Automatic, By action
  4. 4. Concept: Standard of Individual Living (SOIL), and interaction with Saving More SOIL (Current) Before retirement Lines cross = When can retire Age 2) SOIL lowered because Money Saved, not spent = Can retire even sooner (few; dynamic) Portfolio Balance When save more: 1) Lines cross SOONER since saving more increases portfolio balance (everybody; static) More saved; moves line more Dynamic: Combined effect is to move to “Green Triangle” so you may retire sooner New SOIL Automatic, By action

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