Expert insight

Flipping the script on how we talk about investing success

December 05, 2023

Joel M. Dickson, Ph.D.

Global Head of Advice Methodology

Chart shows the changing proportions of savings and investment returns in contributing to an investment goal over time. The y-axis of the chart is labeled “Portion of contribution to investment goal,” with “0%” on the bottom and “100%” on the top. The x-axis is labeled “Goal horizon” and runs from zero on the left to “40-year” on the right, with “2-year,” “10-year,” and “30-year” called out in between. A general arc is shown in the chart, running from the bottom of the lower left side to a little above the midpoint of the right side (at roughly 65%). Pale blue and teal define this arc, with pale blue representing savings and teal representing investment returns. The chart shows that as the goal horizon increases, the contribution to the goal amount from savings diminishes and the contribution to the goal from investment returns increases. Three sets of data are called out along the arc, for the 2-, 10-, and 30-year points along the x-axis, showing the proportion of savings and investment returns at each point. At two years, the contribution proportions are 94% savings, 6% investment returns; at 10 years, they are 80% savings, 20% investment returns; at 30 years, they are 51% savings, 49% investment returns.
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