Small Savings, Big Impact: What 10% Can Do For You

Hi, I am Mr. Idiot and I help people visualize their 'Financial Future' to inspire them for baby steps. Follow me on facebook

Report 1 : "Real median household income was $80,610 in 2023", Census.gov

Report 2 : "EBRI’s Spending in Retirement Survey conducted in 2022 asked nearly 2,000 Americans aged 62 to 75 about their spending patterns. While approximately one-half of this number described spending less than $2,000 per month", Smart Asset

I created a visualization to illustrate the long-term effects of saving 10% of household income from age 25 until retirement at 60, and then withdrawing $2,000 per month during retirement. The visualization assumes a 3% monthly increase in investments and a corresponding 3% yearly increase in withdrawals to account for inflation.

Comparison: Using lifetime average returns, we compared four funds that have been in operation for over 30 years.

I hope this was helpful for you to visualize it . Pay attention to your investments as it costs millions.

Call To Action : Open a Brokerage account and start investing small amount consistently

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Thank you and keep building your legacy through Generational Wealth! Take care and don't forget to enjoy the journey and take care of your health.

Note : Please note that the calculations are estimates based on certain assumptions, such as variable annual returns. This blog post is intended to illustrate the potential long-term benefits of consistent saving and investing, not to provide specific financial advice. The information presented on this blog, including any visualizations or projections based on average historical data, should not be considered financial advice. Investing involves inherent risks, and the value of investments can fluctuate significantly.

The potential for significant wealth accumulation is clear. A consistent 14.59% return, mirroring FOCPX's historical performance, could generate $1.9 billion. Even with more conservative S&P 500-like returns (FXAIX), they could achieve $221 million when the person become 100 years old.