“Ideal networth formula”

[carlsbadworker]

[quote=kev374]too simplistic, besides in my personal opinion we are going to be hit by a massive wave of inflation and higher taxes in the years to come which will wipe out savings unless you’re invested in something that will survive that.[/quote]

That is right. If I were to design a formula, I would assuming an inflation adjusted 2% return on my networths, and walk backwards to see how much saving is needed each year from now until my retirement.
Unfortunately, that will make the formula complex. And a complex formula has its own drawbacks (hard to remember thus impossible to draw actions based on the formula).

[IT.MOM]

Is investing in RE a good way to fight off the in coming inflation? Any other good way for us to protect our nest egg? Is cash still the king?

[IT.MOM]

Is investing in RE a good way to fight off the in coming inflation? Any other good way for us to protect our nest egg? Is cash still the king?

[IT.MOM]

Is investing in RE a good way to fight off the in coming inflation? Any other good way for us to protect our nest egg? Is cash still the king?

[IT.MOM]

Is investing in RE a good way to fight off the in coming inflation? Any other good way for us to protect our nest egg? Is cash still the king?

[IT.MOM]

Is investing in RE a good way to fight off the in coming inflation? Any other good way for us to protect our nest egg? Is cash still the king?

[(former)FormerSanDiegan]

Excellent points carlsbadworker.
Wealth accumulation is not linear with time (age). If one is saving and growing a nest egg, it should follow a growth curve.
I think that would be too complicated for the audience targets by the millionaire next door, so he uses an approximation that probably makes sense for people in the ~ 40-50 age range.

[(former)FormerSanDiegan]

Excellent points carlsbadworker.
Wealth accumulation is not linear with time (age). If one is saving and growing a nest egg, it should follow a growth curve.
I think that would be too complicated for the audience targets by the millionaire next door, so he uses an approximation that probably makes sense for people in the ~ 40-50 age range.

[(former)FormerSanDiegan]

Excellent points carlsbadworker.
Wealth accumulation is not linear with time (age). If one is saving and growing a nest egg, it should follow a growth curve.
I think that would be too complicated for the audience targets by the millionaire next door, so he uses an approximation that probably makes sense for people in the ~ 40-50 age range.

[(former)FormerSanDiegan]

Excellent points carlsbadworker.
Wealth accumulation is not linear with time (age). If one is saving and growing a nest egg, it should follow a growth curve.
I think that would be too complicated for the audience targets by the millionaire next door, so he uses an approximation that probably makes sense for people in the ~ 40-50 age range.

[(former)FormerSanDiegan]

Excellent points carlsbadworker.
Wealth accumulation is not linear with time (age). If one is saving and growing a nest egg, it should follow a growth curve.
I think that would be too complicated for the audience targets by the millionaire next door, so he uses an approximation that probably makes sense for people in the ~ 40-50 age range.

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