Start early in planning your retirement, we always hear. The question is: “How early is early?” It really depends on WHEN do you intend to retire, and HOW MUCH capital you intend to create.
The magic of retirement planning is in TIME. Because, time allows COMPOUND INTEREST and INVESTMENT GROWTH. Retirement planning is no rocket science. It's essentially money x time x expected return = capital. So, small money x short time x low return = low capital whereas, big money x long time x high return = big capital. It is simple mathematics.
Now, why is it difficult to plan for retirement in your 50s? Because the key to growing your wealth lies mainly in TIME. With shorter time period, even with high return, you most likely won’t be able to grow sizable capital. One could argue that if he has put 100% of his asset in BTC 2 years ago, he would have made 500% in 2 years. YET, we all know it won’t be a rational decision to do so.
What’s your strategy in creating a sound retirement plan?
