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This ad is brutal, but it is a brutal truth. You can never save enough money. You need to put your money to work. Invest in property or stocks that produce an income rather than focusing on equity growth.
Posted in these groups: 
Retirement
Investing
Retirement Investing
Posted >1 y ago
Responses: 3
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Fixed income investments and equity growth investments both have a place in ones portfolio. It all comes down your preferences in balancing risk vs reward and capital preservation vs growth.
Right now, my risk level is OK with 100% equity growth to build wealth in my portfolio. Later on (around SSA retirement age), I'll start transitioning part of that growth into fixed income for stability and preservation should the market go down. I can continue to build wealth via equity growth investments as I know I'll always have my retirement pension.
Fixed income investing does best at preserving capital but the growth rates are much less than equity growth investments. To have fixed income investments generate enough income to replace gainful employment or pension, you'd need substantial capital to invest. While I could do that now with some of my investments, I'm going to let it grow more so that when it does come time to preserve capital, I'll have much more capital to preserve to generate more income.
In the case of this ad, the boy held all of his capital in an investment that did not earn any income or growth. If he had taken his allowance and invested it for growth, he very easily could have had enough money to buy that telescope before the price went up. Or at least with his current contribution rate, would have been able to make up the difference much sooner.
Right now, my risk level is OK with 100% equity growth to build wealth in my portfolio. Later on (around SSA retirement age), I'll start transitioning part of that growth into fixed income for stability and preservation should the market go down. I can continue to build wealth via equity growth investments as I know I'll always have my retirement pension.
Fixed income investing does best at preserving capital but the growth rates are much less than equity growth investments. To have fixed income investments generate enough income to replace gainful employment or pension, you'd need substantial capital to invest. While I could do that now with some of my investments, I'm going to let it grow more so that when it does come time to preserve capital, I'll have much more capital to preserve to generate more income.
In the case of this ad, the boy held all of his capital in an investment that did not earn any income or growth. If he had taken his allowance and invested it for growth, he very easily could have had enough money to buy that telescope before the price went up. Or at least with his current contribution rate, would have been able to make up the difference much sooner.
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CPT Jack Durish
You can never save enough, even with equity growth, for retirement. Remember, your retirement goal is a livable income. If you merely save for equity, you will be taking money out faster than equity grows and ultimately run out of money. When you have an investment that produces a livable income without diminishing equity, you have an income for life.
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MAJ Ken Landgren
We build wealth with equity (stocks, bonds, houses, business, real estate). When it becomes near for retirement, it is prudent to invest in safer investments that will give you interest, dividends, or rent.
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