Too much talk about Numbers, Dates and Compound Growth Rates can make your head spin!
But, Scott makes an interesting observation:
What I learned from this post and using the Annual Effective Rate calculator: http://www.investopedia.com/calculator/AnnualEffectiveRate.aspx
is that if I keep up my focus, work and investing for another 5 years past my 10 year date, I can drop my required compound growth rate by 3%(from 40% down to 37%), however, quadruple my number accomplished from 4 million to 16 million, and i’ll still be in my 40’s.
Incredible what taking a little more time can do for you!
What Scott says is absolutely true, but also consider:
How much does delaying your Date by 1, 3 or 5 years (say) REDUCE your compound growth rate if you KEEP your Number?
Also, what does reducing your compound growth rate do for you in terms of changing the way that you need to think about building up your nest egg?
Does it mean that you no longer need to start a business, or invest in real-estate? Will keeping your money in Index Funds via your 401k do the trick?
So, rethink your Number and Date – but NOT at the expense of your Life’s Purpose …
… then, when you do get to your Date, DO allow the momentum of the activities that got you there to carry you on just a little bit further … you could double your Number, just like that!
Don’t believe me? It’s exactly what I did in the two years following my own 7 million 7 year journey 😉