How do you figure out the best way to save and invest for retirement is one of those questions that has so many different answers. But, it's also true that some answers are better than others.
For example, shoving your money under your mattress probably isn't a good way given it might get stolen or burn in a house fire. Even if the cash is safe and sound, it loses its purchasing power by 1-2.5% each year due to inflation.
But, investing in appreciating assets, using proven methods that build wealth over time, is an answer that most wealthy people can get behind.
Invest For Retirement Patiently
Patience, or what I like to call “Patient Capital,” is the key to long-term wealth building.
Patient Capital means making investments that often take at least five years to see a return. It consists of investments in real estate, private equity, and your own business.
Patient capital is why the world’s wealthiest people and the largest institutional funds have a minority
They know that by removing the temptation to get in and out of investments during times of volatility, they stand a better chance to make higher returns. The long game wins.
And, it's getting easier and easier to setup a strategy that lets your money do what it does best – build.
Although the actual saving aspect of retirement planning may not be that fun, the effort is worth it. Having a financially stress-free retirement is priceless. Stay diligent, focus on the long game, and avoid the temptation to withdraw from your 401(k) too early.
Learn More About Investing And Retirement Planning
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Here are just a few articles you can use to learn more about how to invest for retirement, grow your wealth, and achieve financial independence sooner, rather than later. You can also check out our About page.
- Retirement Savings By Age Guides
Get Free Help With Retirement Planning
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The more you can stay on top of your finances, the better you can optimize your wealth. I've used Personal Capital for free since 2012 and have seen my net worth sky rocket since.
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About the Author: Sam began investing his own money ever since he opened an online brokerage account in 1995. Sam loved investing so much that he decided to make a career out of investing by spending the next 13 years after college working at two of the leading financial service firms in the world. During this time, Sam received his MBA from UC Berkeley with a focus on finance and real estate.