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Return is Good. Amount is Better.

Return is Good. Amount is Better.

Investing

Return is Good. Amount is Better.

Over a number of years, the difference between a 5% average annual return and a 7% average annual return can add up to thousands of dollars. Return is important, but how much you save is much more important. Think of it this way: If you can save 10% of your annual income for twenty or thirty years, your nest egg will grow even if your annual returns are relatively low. If you only invest 5%, you’ll need to receive a much higher return on investment in order to build a sizable nest egg.

None of us can control what the markets will do, but all of us can control what we will do. Focus on saving as much as you can and your investments will grow. Then, if you happen to catch a bull market, you’ll be that much farther ahead.

Return is good. The amount you save is better.

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