Retirement Planning: Contributions, Time, and Compounding
Retirement planning is mostly a set of assumptions: how much is saved now, how much gets added, how long it compounds, and what return is reasonable.
Time is the quiet lever
Earlier contributions have more compounding periods. Even modest increases can matter when they stay invested for decades.
Returns are assumptions, not promises
A projection is not a prediction. Testing conservative, moderate, and optimistic return assumptions can give a more useful range than one exact number.
Do not ignore inflation
Future dollars may buy less than today’s dollars. If you want a rough purchasing-power view, use a lower inflation-adjusted return assumption.
Next steps