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In my last post we started answering the question about what to do if your ‘mountain’ is too steep – that is, your Number just seems way too large:
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That’s it: the all-too-simple ’secret’ to financial success revealed at last 
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@ Scott – What you say is absolutely true; however, it’s also the reverse that I want everyone to consider:
How much does delaying your Date by 1, 2 or 3 years (or more) REDUCE your required compound growth rate? And, what does reducing your compound growth rate mean to you?
Oh no, I definitely don’t won’t to wait a minute longer than I have to, to get to my number and get to live my life’s purpose. I would rather get there in half the time, or better, tomorrow if possible, lol. But like we are talking about, that would require me to steepen my mountain exponentially.
It just boggled my mind though to see the power that time can do for you. The way a few extra years QUADRUPLED the number while at the same time, reducing the required annual compound growth rate powerfully illustrates the point you were trying to make in this post, I think.
In other words “If you are willing to deal with the pain of waiting a little longer to live your life’s purpose, not only will you get 4 times the money, but you can even take the pedal off the metal a bit along the way.”
TIME can be such a powerful wealth building tool.
But I think the whole point here is to choose the investing vehicle that gives you the required annual growth rate that you feel you can personally achieve and if this vehicle your are about to get into does not lead you to your NUMBER by your DATE, then another option is to simply travel longer than you planned.
My take on this is a little bit different for one major reason. I have less time to get to the top.
I really don’t feel like I can lengthen my time so at best I need to lower my expectations, rethink my “List” and see just what else I can do without.
I’ve done just that and am satisfied. My grandkids will just have to live with it.
@ Scott – The ‘momentum’ that you build up getting TO your Number can often carry you well BEYOND your Number … but, you can’t plan on that. BUT, it is a reason why the Rule of 20 is probably sufficient for ‘targeting’ purposes. The 3% or so reduction in Compound Growth Rate is unlikely to be visible (except, perhaps, where it allows you to stay in Index Funds rather than investing in individual stocks … in most other cases, the jumps are just too high).
@ Lee – Exactly right … for you! 
In fact, EVERYBODY should be able to see that the three variables: Number; Date; Investment Type/s can be ‘played with’ to achieve the individual outcome that YOU need … and, only YOU can know that – the grandchildren will accept whatever you decide (as long as it’s something that you would be happy to write into your Rear Deck Speech).
Makes me wish we started this 10 years ago!
@ Debbie – I did 
Thanks to Michael Gerber and the E-Myth: http://www.amazon.com/E-Myth-Revisited-Small-Businesses-About/dp/0887307280/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1226810343&sr=8-1 [NOT an Affiliate Link!]
@ AJC – I should have said, makes me wish *I* started this 10 years ago! I have read E Myth Revisited (twice now) and have The E Myth Mastery waiting for me. Excellent information.
@ Debbie – better now than in 10 years time Good luck with the E-Myth stuff … I’ll help you through whatever questions you have.
@AJC – Great post and oh so true. Whenever I’ve flown a low level route through the mountains it’s always been easier and safer to start a shallow climb to get over the next ridge/mountain rather than waiting.
However, in an airplane it is a lot more FUN to delay the climb, get closer to the mountain, pull a BUNCH of G’s to get the nose into the vertical and see the trees go rushing by in your peripheral vision. What a great ride.
It’s Certainly not as safe, but definitely more fun.
Keep up the great work. I’m really enjoying this site.
Jeff
@ Jeff – So it goes for the Great Entrepreneurial Ride … pull back the stick and hang on for Dear Life! But, I don’t recommend it as a strategy
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Good post. What I learned from this post and using the Annual Effective Rate calculator: http://www.investopedia.com/calculator/AnnualEffectiveRate.aspx
is that if I keep up my focus, work and investing for another 5 years past my 10 year date, I can drop my required compound growth rate by 3%(from 40% down to 37%), however, quadruple my number accomplished from 4 million to 16 million, and i’ll still be in my 40’s.
Incredible what taking a little more time can do for you!