Question

I do resonate with the time value of money concept. “Money that you have in had today can be invested to earn a positive rate of return, producing more money tomorrow”. Right now, I’m only contributing 2% of my wages towards retirement. I’m wondering if I should be contributing more. People are always talking about social security running out so if it’s affordable, is there a suggested rate to contribute?

Your answers must provide clear evidence of critical thinking.  Your answer add greater depth to the discussion by introducing new ideas.

Answer 1

The answer to this problem depends upon our own needs and our sense of understanding. We need to be able to determine what we expect our retirement fund to be before starting out with any other aspect of understanding of the underlying values for our problems. Even if social sustenance is brought into the question, the fact still remains that in order to be able to successfully be able to reach the desired level form our processes, we need to be able to maintain a clear understanding and a functional approach, which makes the best possible use of the currently available resources for us. In this case, since we only have our salary to consider and invest, we have to be able to manage our funds in a way that provides the best outlook for this situation.

But, to answer the next part of the question, I can say that I do not believe that a set percentage of input does not always guarantee that our goals and expectations for the future values can be met. With this implication in mind, we can assume that the function of each process would then need to be considered separately from each other.

What this would mean is that we would be able to make the best possible use of planning if we have a set goal in mind and periodically revisit the values we have selected to make sure that we can meet our needs at the end of a certain period.