In case you haven’t heard, America’s Social Security and retirement planning system is outdated. It was never designed for today’s reality. There are several reasons why this has happened. One of those reasons is that life expectancy has increased dramatically since the 1900’s. Thankfully, men and women are living 30+ years longer today and healthcare costs are rising way faster than inflation. Because of this, it is extremely important that we make adjustments to our investment and retirement portfolios to even come close to living the life of our dreams in our golden years.
My goal with this blog post is to help you to see that you must expand your investment portfolios beyond stocks and bonds. When your true stock market returns are adjusted for inflation, they are just too low for the average investor to get ahead. So what is the answer? As investors, we must understand the magic of compounding returns as well as seek higher yielding investments for our portfolio.
$100 for 30 years at 2% return = $182
$100 for 30 years at 10% return = $1984
$100 for 30 years at 18% return = $21,270