4 ms·
If we take into account the time-value of money (which would be natural since we're talking about savings/investments that are subject to inflation and compound
by lewisl9029 10y ago
If we take into account the time-value of money (which would be natural since we're talking about savings/investments that are subject to inflation and compound interest), higher income + higher COL remains favorable even if the cost of living ratio remains constant upon retirement.
- davidgay 10y agoHmm, no. Each per-year saved amount is compounded by the same multiplier k after N years (assuming the same interest rate), so if you start with 1.5x more, you end up with 1.5x more.
- lewisl9029 10y agoYou're totally right. I clearly wasn't thinking straight when I made that comment. There is still plenty of inherent value in accumulating wealth at a faster pace though.