Spamdex - Spam Archive

Report spam

Send in your spam and get the offenders listed

Forward the spam you receive to

Also in

Free Money Finance

Free Money Finance

Savings Rate is More Important than Investment Return

Posted: 18 Sep 2017 02:05 AM PDT

Here's a piece from MarketWatch saying savings rate is more important than investment return. A summary of their thoughts:

The secret to building wealth has less to do with returns and more to do with your savings rate, according to analysts at Pension Partners.

In other words, the amount of money you contribute to your retirement fund is far more important than what investment vehicles the money is parked in, as you can control the former but not the latter.

It makes sense intuitively. Saving $20,000 a year will grow your wealth a lot faster than saving $10,000 a year. But even incremental savings-rate increases play a far bigger role than corresponding increases in the rate of return.

To illustrate the importance of savings vis-à-vis investing, Charlie Bilello, director of research at Pension Partners LLC, ran some numbers on what would happen to your wealth if you increased your savings rate by 1% and correspondingly what would happen if the rate of return on a portfolio increased by 1%.

Bilello assumed a median U.S. household income of $58,000, which after taxes leaves $49,300 to spend. Saving only 1% of this income every year for 30 years at a 10% return will lead to an accumulation of $81,096. That number is less than your wealth after saving 5.5% of income at a meager 1%, which would grow to $94.319.

Ok, let's review a bit:

  • There are three parts to the overall performance of an investment: the amount you save, how long you invest it for, and the return rate
  • Of these three, you can control two of them: how much you save and how long you invest.
  • The best way to maximize your investments is to let them compound over a long period of time
  • After that, the amount you invest is most important.
  • There's really very little you can do about return rate. IMO the best option for it is to simply invest in index funds. That way you'll beat 95%+ of the investors out there.
  • Even though it's the least important of the three, most people focus on return rate. It also dominates the financial media. Yes, it's the most exciting of the three (trying to beat everyone else), but it's way over-emphasized by the majority of people.

My best advice is to save as much as you can for as long as you can, putting what you save in index funds.

That's it.


All titles, content, publisher names, trademarks, artwork, and associated imagery are trademarks and/or copyright material of their respective owners. All rights reserved. The Spam Archive website contains material for general information purposes only. It has been written for the purpose of providing information and historical reference containing in the main instances of business or commercial spam.

Lets beat spam together
Many of the messages in Spamdex's archive contain forged headers in one form or another. The fact that an email claims to have come from one email address or another does not mean it actually originated at that address!
Please use spamdex responsibly.

Yes You! Get INVOLVED - Send in your spam and report offenders

Create a rule in outlook or simply forward the junk email you receive to | See contributors

Google + Spam | 2010- 2017 Spamdex - The Spam Archive for the internet. unsolicited electric messages (spam) archived for posterity. Link to us and help promote Spamdex as a means of forcing Spammers to re-think the amount of spam they send us.

The Spam Archive - Chronicling spam emails into readable web records index for all time

Please contact us with any comments or questions at Spam Archive is a non-profit library of thousands of spam email messages sent to a single email address. A number of far-sighted people have been saving all their spam and have put it online. This is a valuable resource for anyone writing Bayesian filters. The Spam Archive is building a digital library of Internet spam. Your use of the Archive is subject to the Archive's Terms of Use. All emails viewed are copyright of the respected companies or corporations. Special thanks: We would like to thank Benedict who is a SEO Consultant who has freely given up his time to advise us on how best to maximise on our organic search traffic strategy and also for his wonderful creative vision on how to spread the word about Spamdex and how we try to combat spam across the globe. Click here for more information.

Our inspiration is the "Internet Archive" USA. "Libraries exist to preserve society's cultural artefacts and to provide access to them. If libraries are to continue to foster education and scholarship in this era of digital technology, it's essential for them to extend those functions into the digital world." This is our library of unsolicited emails from around the world. See Spamdex is in no way associated though. Supporters and members of Helping rid the internet of spam, one email at a time. Working with Inernet Aware to improve user knowlegde on keeping safe online. | Link to us | Terms | Privacy | Cookies | Complaints | Copyright | Spam emails / ICO | Spam images | Sitemap

Important: Users take note, this is Spamdex - The Spam Archive for the internet. Some of the pages indexed could contain offensive language or contain fraudulent offers. If an offer looks too good to be true it probably is! Please tread, carefully, all of the links should be fine. Clicking I agree means you agree to our terms and conditions. We cannot be held responsible etc etc.

The Spam Archive - Chronicling spam emails into readable web records

The Glass House | London | SW19 8AE |
Spamdex is a digital archive of unsolicited electronic mail 4.8 out of 5 based on reviews
Spamdex - The Spam Archive Located in London, SW19 8AE. Phone: 080000 0514541.