📊 Should you invest or save your lump sum?
Inspired by a user's dilemma: Read the Reddit post.
You have a fixed pot of money and a fixed timeline. How much more income could you generate by investing in index funds instead of playing it safe in a savings account? This calculator compares the maximum annual income you can draw from both strategies over your timeline.
🏦 The Safe Route (Savings)
Keeping your money in a high-yield savings account offers safety, but lower returns. Let's see how much you can safely withdraw each year if you keep it in cash.
📈 The Growth Route (Index Funds)
Investing in index funds introduces volatility, but historically provides higher returns. Over a 10-year period, the risk of losing money decreases, allowing for a higher withdrawal rate.
See Also
🏁 The Verdict
Extra Annual Income (Investing)
Annual Income (Savings)
Annual Income (Investing)
Recommendation
Invest
Calculator updated by heyfinfam (v26.7.0) · View history
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