Saturday, December 17, 2005

Stating the Obvious

Yesterday night while I was procrastinating about writing a blog post, I was reading this article on CNN. Like most 'How to retire easily' articles it was pretty much nothing but fluff: Save more, spend less, invest your money, etc.

But it did contain one of the most painfully obvious observations I've seen:

... But by raising his contribution from 2 percent of salary to 6 percent, Joe would have tripled his 401(k) balance, nearly an $80,000 increase.

No kidding? By tripling his contributions to the 401k, his balance would have tripled? Who would have guessed that? I'm going to go out on a limb and suggest that by increasing his contributions to 8%, Joe could have quadrupled his 401(k) balance!

At least they could have pointed out that the balance probably more than tripled, and segued into a paragraph or two on compound interest or something.

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