The article emphasizes the importance of consistent saving and investing to build a significant retirement portfolio. Automating contributions and reinvesting dividends enhances the benefits of compound interest, often described as the snowball effect. While market volatility and memories of past crashes deter some from investing, gradually overcoming this fear is crucial. The author highlights the risks of solely saving money without investing, as it can lead to diminished purchasing power due to inflation. Additionally, resources like financial advisors can help individuals navigate their retirement planning more effectively.
It's natural to be afraid of what one doesn't understand. It took years for stocks to come back from the 2008 market crash, and while those who stayed the course were fine, it's not hard to imagine that many threw in the towel because of the emotional toll.
Saving and investing go hand-in-hand. Without investing, one becomes more at risk of losing purchasing power to inflation.
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