She’s automated her savings of 10% of her income. She’s putting it in a Roth 401(k), where it’s being invested in low-fee index funds with an estimated growth rate of 6%. (This is the percent that Jack Bogle estimates the markets will return over the next decade. However, the average stock market return has been 9.2% over the last 20 years.) We ran it through the wealth calculator, which you’ll do in the next chapter, and she found out that instead of the $3 million she thought it would take to achieve financial security, she would need to accumulate only $640,000 in her Freedom Fund to have
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