Quote:
Originally Posted by GMZ
Sorry but I just cant let this fly, not saying not to save but compound interest with the monetary system we have now is an illusion.
Compound interest huh? How about compound inflation? Will that $3M buy what it could at retirement as it did when the person started saving? No way!!
47 yrs ago a dollar went a long way, now not so much. Why? Weve had inflation almost EVERY year since the damn 30's that why.
Theres a huge difference between nominal returns (on paper) and real returns (purchasing power after inflation). Can I get some real deflation please!  |
well, my dad just passed away two weeks ago. He lied about his age and joined the navy at 17, retired after 22 years, then retired from the post office after 20 years there. Looking through his social security statements with your annual pay summary, the most he ever made in the Navy was 16000 per year (retired in 1980) and the most he ever made at the post office was 54000 in his last year there (retired 2001). He left an estate of just under 1 million because he believed in never paying for anything twice (financing), and paying yourself first. We never wanted for anything, nor were we short of money, just that saving from day one will get you extremely far in life.