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The Altium Limited (ASX: ALU) share price had a relatively poor day of trade on Monday.

The electronic design software company’s shares ended the session almost 1% lower at $35.25.

Why did the Altium share price drop on Monday?

There were a couple of catalysts for the weakness in the Altium share price on Monday.

The first was broad weakness in the tech sector following a disappointing end to last week on Wall Street’s NASDAQ index.

The tech-focused index ended with a 1.3% decline amid rate hike concerns and current futures contracts are pointing to only a very modest recovery on Monday night.

As a result, the S&P/ASX All Technology Index fell 0.8% this afternoon, compared to a 0.35% gain by the benchmark ASX 200 index.

What else was dragging on its shares?

Also dragging on the Altium share price was the fact that it was trading ex-dividend this morning.

Last month, the company released its full year results and revealed strong revenue and profit growth for FY 2022.

This allowed the Altium board to declare a fully franked final dividend of 26 cents per share, bringing its full year dividend to 47 cents per share. This was an increase of 18% year over year.

This morning, its shares went ex-dividend, which means that the rights to this final dividend stay with the seller and don’t transfer to the buyer of shares between now and the payment date. In light of this, its shares have fallen to reflect this.

Eligible shareholders won’t have long to wait until they receive this dividend payment. Altium is planning to pay shareholders before the end of the month on 27 September.

The post Why did the Altium share price lad the ASX 200 today? appeared first on The Motley Fool Australia.

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More reading

• Up 15% in a month, is ASX 200 tech share Altium on the comeback trail?
• These ASX 200 shares are going ex-dividend on Monday
• Experts name 3 ASX growth shares to buy in September
• ASX 200 reporting season weekly wrap: Top risers and fallers
• Could ASX 200 tech share Altium be in for another takeover approach?

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Shares in Incannex Healthcare Ltd (ASX: IHL) roared higher to close the market on Monday.

Incannex shares closed the day up 13.04% to 26 cents apiece.

In comparison, the All Ordinaries (ASX: XAO) finished the day up 0.26%.

Why are Incannex shares smoking out the ASX?

Investors bid up Incannex shares on Monday, despite the medicinal cannabis company not releasing any announcements to the market. However, the S&P Dow Jones Indices updated its quarterly rebalance late on Friday.

As a result, a number of shares were on the move today following their addition or removal from the S&P/ASX Indices.

Incannex shares will be added to the S&P/ASX 300 Index effective prior to the open of trading on 19 September.

The inclusion to the ASX 300 Index provides a much-welcomed boost for the company’s shares.

This is because fund managers must abide by their investing mandate which permits them to only buy shares included in specific indices.

Each index comprises a number of companies that have the largest market capitalisation of that group.

Incannex share price summary

In March 2022, the Incannex share price rocketed to a multi-year high of 75.5 cents before treading downhill.

Fast-forward to August, and its shares hit a 52-week low of 18.5 cents.

This means that when looking at year to date, Incannex shares are down 58.4%.

Based on today’s price, Incannex is worth approximately $350.42 million and has 1.52 billion shares outstanding.

The post Why the Incannex share price leapt 13% on Monday? appeared first on The Motley Fool Australia.

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More reading

• Up 35% in a month, is the Incannex share price on the comeback trail?
• Can ASX cannabis shares ever fully recover?
• Why is the Incannex share price spiking 8% on Tuesday?
• ‘World’s largest portfolio’: Why this ASX cannabis share is up 36% in August

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Materials Index (ASX: XMJ) closed 1.94% higher today, but one ASX iron ore share left it in the shade.

The Flinders Mines Ltd (ASX: FMS) share price soared 41.51% today to close at 75 cents.

Let’s take a look at why this ASX iron ore share had such a good day.

Iron ore development news

Investors bought up Flinders Mines shares after the company advised a farm-in agreement with BBIG Group Pty Ltd had been terminated.

This will enable Flinders to negotiate a staged development of its Pilbara Iron Ore Project in Western Australia.

Stage one will involve a lower volume, near-term trucking operation to “take advantage of iron ore prices” and provide cash flow.

Flinders will also keep looking into stage two, a higher volume operation involving the use of rail, road, and port.

Commenting on the news, Flinders chair Cheryl Edwardes said:

The FIA termination provides Flinders with a more certain pathway to near term cashflow as we attempt to capitalise on current iron ore prices and pursue a less capital intensive, nearer-term mining and logistics solution.

Flinders said there will be one final shortfall payment of about $10 million.

Share price snapshot

The Flinders Mines share price has fallen around 15% in the past year. However, year to date, it has surged 32%. The company’s shares have gained 50% in the last month alone.

For perspective, the S&P/ASX 200 Materials Index has fallen 7% in the past year.

Flinders Mines has a current market capitalisation of nearly $127 million.

The post Guess which ASX iron ore share rocketed 40% on Monday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Down 49% so far this year, has the Life360 share price been massively oversold?
• Is El Salvador’s great Bitcoin experiment fizzling or just getting started?
• 3 ASX All Ords shares smashing new highs on Monday
• 2 ASX uranium shares added to the ASX 300 today

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) edged higher on Monday following last week’s horror 3.88% tumble. The index closed today’s trade 0.34% higher at 6,852.20 points.

The S&P/ASX 200 Energy Index (ASX: XEJ) provided a major boost to the market, lifting 4%.

Coal miners led amid news Russia has pushed back the reopening of Nord Stream 1 – a major gas pipeline to Europe, as ABC News reported. That could cause gas prices and demand for coal to surge in the continent.

Oil prices also lifted on Friday, with the Brent crude oil price gaining 0.7% to US$93.02 a barrel and the US Nymex crude oil price lifting 0.3% to US$86.87 a barrel.

The S&P/ASX 200 Materials Index (ASX: XMJ) also rose 1.9% today. The gain came after iron ore futures slipped 1.1% to US$95.34 on Friday while gold futures lifted 0.8% to US$1,722.60 an ounce.

All in all, four of the ASX 200’s 11 sectors traded higher today. But which share outperformed all others? Keep reading to find out.

Top 10 ASX 200 shares countdown

Monday’s top performing ASX 200 share was coal producer Coronado Global Resources Inc (ASX: CRN). The stock lifted 7.45% to close the session at $1.73.

Find out more about the company and what it’s been up to here.

Today’s biggest gains were made by these ASX shares:

ASX-listed company	Share price	Price change
Coronado Global Resources Inc (ASX: CRN)	$1.73	7.45%
Whitehaven Coal Ltd (ASX: WHC)	$8.49	6.52%
Paladin Energy Ltd (ASX: PDN)	$0.835	6.37%
Core Lithium Ltd (ASX: CXO)	$1.36	5.84%
New Hope Corporation Limited (ASX: NHC)	$5.39	5.69%
Beach Energy Ltd (ASX: BPT)	$1.725	5.18%
Woodside Energy Group Ltd (ASX: WDS)	$35.08	4.25%
Pilbara Minerals Ltd (ASX: PLS)	$3.70	4.23%
Evolution Mining Ltd (ASX: EVN)	$2.25	4.17%
West African Resources Ltd (ASX: WAF)	$1.205	3.88%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ords shares smashing new highs on Monday
• Why is the Whitehaven share price having such a stellar session today?
• Leading brokers name 3 ASX shares to buy today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why is the Core Lithium share price cruising 5% higher today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Life360 Inc (ASX: 360) share price slid further into the red on Monday.

At market close, shares in the family safety tech company are 4.87% lower to $4.88. With no company announcements out today, it’s fair to say the disappointing move was likely tied to Life360’s planned removal from the S&P/ASX 200 Index (ASX: XJO) in the upcoming September quarterly rebalance.

The decision to oust Life360 from the benchmark follows a painful 49% fall since the beginning of the year. Unfortunately for shareholders, a 40% underperformance of the Aussie index was terrible enough to receive the boot.

However, could the Life360 share price now represent value?

A diamond in the rough

There’s no sugarcoating it — Life360 is not profitable… and by a fair margin at that. According to its recent half-year report, the company made a $58.2 million net loss on the bottom line.

That is not a result investors like to see. Especially in an environment where capital costs are increasing due to interest rates. Although, one fund manager is willing to forgive Life360’s lack of fruitful profits, thanks to its potential to be a market leader.

Discovery Funds portfolio manager Chris Bainbridge named Life360 as one company the fund was keen on. Furthermore, Bainbridge discussed his belief that the unravelling of valuations across ASX-listed tech shares was a net positive, stating:

We believe this correction is one of the best things that could have happened for a number of tech companies because it enforces a financial discipline that hasn’t been there for the last few years. There are now depressed valuations for companies with demonstrably better earnings than anyone was projecting six months ago, and that’s something the market is missing.

In terms of profitability, Life360 is forecast to become earnings before interest, tax, depreciation, and amortisation (EBITDA) positive toward the end of 2023. Though, it is Bainbridge’s belief in Life360’s potentially market-leading position that has excited.

How the Life360 share price compares

The unprofitable nature of the company means we can’t use a traditional price-to-earnings (P/E) ratio for peer comparisons. In its place, let’s take a look at how the Life360 share price stacks up using the price-to-sales (P/S) ratio.

At a P/S ratio of around 4 times, Life360 is roughly on par with other ASX-listed software companies. For example, Hansen Technologies Limited (ASX: HSN) trades at 3.2 times. Whereas, Nitro Software Ltd (ASX: NTO) is fetching 4.5 times.

The post Down 49% so far this year, has the Life360 share price been massively oversold? appeared first on The Motley Fool Australia.

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More reading

• Why these 3 ASX shares could be in for a massive boost this month
• 5 things to watch on the ASX 200 on Monday
• Zip and these shares have been kicked out of the ASX 200 index
• Here are the top 10 ASX 200 shares today
• It’s a cloudy day on the ASX, but some All Ords shares are still shining brightly

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hansen Technologies and Life360, Inc. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Bitcoin (CRYPTO: BTC) and El Salvador made global headlines in June 2021, when the Central American nation announced it would make the crypto legal tender.

It became the first country in the world to do so.

(The Central African Republic followed suit in May this year, becoming the second nation to adopt BTC as a nationally recognised currency.)

The Bitcoin adoption became official on 7 September last year. At the time, El Salvador’s flamboyant president Nayib Bukele pronounced the token would change his nation for the better.

And for the first few months, the Bitcoin price kept climbing, trading at all-time highs of US$68,790 on 10 November.

But you’re likely aware of the crash that’s happened since. BTC is currently trading for US$19,864, down 71% from its highs.

Is El Salvador’s Bitcoin adoption fizzling?

The big price falls over the past 10 months certainly have not spurred Salvadorans into rushing to embrace the crypto instead of US dollars, which remain the favoured currency.

As to the future of the nation’s great crypto experiment, that depends on who you ask.

El Salvador’s former central bank chief Carlos Acevedo is decidedly on the fizzling side.

According to Acevedo (courtesy of Bloomberg):

No one really talks about Bitcoin here anymore. It’s kind of been forgotten. I don’t know if you’d call that a failure, but it certainly hasn’t been a success… In El Salvador we have a good payments network, so why transfer money with cryptocurrency?

Only around 2% of remittances have been sent from crypto wallets, according to the central bank.

An opinion poll conducted by the Universidad Centroamericana also found less than stellar support for Bitcoin in day-to-day use.

“If you go to any market in El Salvador, you’re more likely to receive an insult than be able to purchase something in Bitcoin. It’s not a part of people’s daily routine,” director of the university’s public opinion institute Laura Andrade said.

Atop the less than hoped for adoption rates, the government’s adoption of Bitcoin as legal tender has also seen the International Monetary Fund delay approval of a US$1.3 billion program.

Chief operating officer of Torino Capital Fabiano Borsato said (quoted by Bloomberg):

The Bitcoin experiment promoted by the Bukele administration has significantly raised the market’s risk perception of the country. It’s being implemented in a context of fragile public finances, high and persistent fiscal deficits and doubts about the rule of law in the country.

This, in our opinion, will prevent El Salvador from accessing financing in the international markets under favourable conditions in the short and medium term.

Or is BTC adoption just getting off the ground?

Not everyone agrees that the great crypto experiment is a flop.

El Salvador’s digital wallet, Chivo, has more than four million users, according to finance minister Alejandro Zelaya. And he says it’s promoting a rapid rebound in tourism and drawing in international blockchain companies.

And the government still intends to issue its Bitcoin-backed bond, the so-called ‘volcano token’.

Chief technology officer at Bitfinex Paolo Ardoino is also among the proponents of El Salvador’s crypto embrace.

“Assuming cars were a failure because after the very first year Ford started production in 1896 no more than 2% of the population had a car would’ve been quite myopic,” he said.

Ardoino added, “The government has a long-term vision. The crypto industry is highly technological and that is the type of industry that everyone should want in its country.”

And founder of Bank to the Future Simon Dixon disagrees that adoption levels are low after visiting the nation last month.

According to Dixon (quoted by Bloomberg):

I don’t see adoption as low. I see a country where everybody has a Bitcoin wallet, and everybody knows what Bitcoin is. This is the first time I’ve ever met a government that has a president who has assembled a team that really operates with the urgency and impact of a fast-growing company.

Fizzling or just taking off?

Time will tell.

The post Is El Salvador’s great Bitcoin experiment fizzling or just getting started? appeared first on The Motley Fool Australia.

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More reading

• Why did the Dogecoin price tumble 12% in August?
• The Bitcoin price tanked 15% in August. Here’s why
• Why the Bitcoin price was struggling today
• Bitcoin price resilience ‘could be a promising sign’: expert
• Can the Bitcoin price reach $100,000?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been a bumpy start to the trading week for the All Ordinaries Index (ASX: XAO) and ASX shares this Monday. As the close of trade looms closer, the All Ords is up a nervous 0.14% at just over 7,065 points after spending time in both positive and negative territory over today’s session.

But that doesn’t mean it has been a bumpy day for all All Ords shares. In fact, here are three that have just hit new highs during this Monday’s session, some of them record highs.

3 All Ords shares that just hit new highs

Whitehaven Coal Ltd (ASX: WHC)

All Ords coal mining company Whitehaven is one of these shares. The miner has put on an impressive 6.59% at present to $8.49 a share. But earlier in today’s session, Whitehaven rose as high as $8.59 a share. This is a new record high for Whitehaven and no doubt very welcome for the company’s investors.

As my Fool colleague Bernd covered this afternoon, ASX coal shares are all benefitting from surging coal prices, which are nearing record levels. The Whitehaven share price is now up an extraordinary 900% or so over the past two years.

Lovisa Holdings Ltd (ASX: LOV)

All Ords retail share Lovisa is another company that has enjoyed some robust share price appreciation this Monday. As it currently goes, Lovisa shares have risen by a pleasing 4.10% to $22.99 each. But this company touched $23.95 a share soon after market open this morning, its new record high.

These gains from Lovisa appear to be a consequence of some big news for the company this morning. Lovisa is set to join the S&P/ASX 200 Index (ASX: XJO) later this month when the index undergoes its next quarterly rebalance.

This is good news for the company, as ASX 200 inclusion results in ASX 200 index funds having to add Lovisa shares to their portfolios. It also could open up ASX 200-restricted managed funds to the company as well.

NRW Holdings Limited (ASX: NWH)

NRW Holdings is another All Ords share impressing investors this Monday. This ASX construction and mining contracting company has gained a solid 2.83% today to $2.54 a share. That’s bang on NRW’s new 52-week high.

There’s been no fresh news that might easily explain this move higher. However, NRW shares have been in demand for a while now. The company is now up an impressive 49% since the start of July.

The post 3 ASX All Ords shares smashing new highs on Monday appeared first on The Motley Fool Australia.

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More reading

• Why is the Whitehaven share price having such a stellar session today?
• Why Allkem, Capricorn Metals, Lovisa, and Pilbara Minerals shares are rising today
• Here’s why the Lovisa share price leapt 8% on Monday
• Why are ASX 200 coal shares smashing the market on Monday?
• Why these 3 ASX shares could be in for a massive boost this month

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Uranium shares Boss Energy Ltd (ASX: BOE) and Deep Yellow Ltd (ASX: DYL) were added to the ASX 300 today.

Boss shares lifted 5.9% to a high of $2.67 a share in intraday trading, finishing the day 2.38% higher at $2.58 a share.

Meantime, the Deep Yellow share price gained 3.9% at one stage, touching $1.065 before closing the day 0.49% lower at $1.02.

Let’s delve into this news in a little more detail.

Quarterly rebalance

Boss and Deep Yellow are among 16 companies that have been added to the ASX 300 as part of the index’s September quarterly rebalance.

Deep Yellow is developing the Tumas and Mulga Rock uranium projects. Tumas is located in Namibia, while Mulga Rock is in Western Australia.

The company says it is aiming to become a “leading, reliable, long term uranium supplier into a growing market”. Deep Yellow recently completed a merger with Vimy Resources Limited.

Meanwhile, Boss Energy is developing the Honeymoon Uranium Project in South Australia. Boss is targeting production by the December quarter of 2023.

Energy matters were in focus today amid news Russia has cut gas exports to Europe via the Nord Stream 1 gas pipeline. Uranium is used as a fuel for nuclear power plants. The S&P/ASX 200 Energy Index (ASX: XEJ) also closed 3.78% higher on Monday.

Share price snapshot

The Boss Energy share price has soared 44% in the past 12 months, while Deep Yellow’s has risen 12%.

For perspective, the ASX 300 Index has fallen more than 9% in the past year.

Boss Energy has a market capitalisation of $913 million, while Deep Yellow’s is around $750 million.

The post 2 ASX uranium shares added to the ASX 300 today appeared first on The Motley Fool Australia.

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More reading

• Why did ASX uranium shares get hammered on Thursday?
• Why BHP, Deep Yellow, Nickel Industries, and PointsBet shares are dropping
• Why Deep Yellow, Nitro, Tyro, and Webjet shares are storming higher
• Why A2 Milk, Deep Yellow, Healius, and IGO shares are racing higher
• Could this tiny development add even more fuel to ASX uranium shares?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Liontown Resources Limited (ASX: LTR) share price has started the week in a positive fashion.

In afternoon trade, the lithium miner’s shares are up 3% to $1.67.

This means the Liontown share price is now up over 75% over the last seven weeks.

Why is the Liontown share price roaring today?

Investors have been bidding the Liontown share price higher today in response to a positive broker note out of JP Morgan relating to the lithium sector.

While its analysts see supply chain issues and a probable recession as a headwind for electric vehicle sales, they have still bumped their lithium demand forecasts higher. This is to reflect higher electric vehicle penetration rate assumptions thanks to government incentives.

This has led to the broker bumping its price targets higher on a range of lithium shares, including Liontown.

What changes have been made?

According to the note, the broker has retained its overweight rating and lifted its price target on Allkem Ltd (ASX: AKE) shares to $21.00.

For Pilbara Minerals Ltd (ASX: PLS), the broker has upgraded its shares to an overweight rating with an improved price target of $4.10.

Finally, the broker’s target on the Liontown share price has been lifted by a mammoth 45% to $1.60.

However, with its shares trading largely in line with this price target, the broker has held firm with its neutral rating at this point.

JP Morgan believes investors should be buying Allkem ahead of the others. It has named the miner as its top pick in the lithium space. And with potential upside of over 50%, it isn’t hard to see why.

The post Here’s why the Liontown share price is roaring higher today appeared first on The Motley Fool Australia.

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More reading

• Where does Tesla get its lithium and do any ASX shares benefit?
• These were the best performers on the ASX 200 in August
• Why did the Liontown share price beat the ASX 200 today?
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Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Everyone wants to have a comfortable retirement without worrying about having enough money to cover their regular expenses, and enough left over to fund hobbies and a few vacations. But some of those same money anxieties can stop you from investing for retirement.

Here’s the thing, though. Investing is crucial to retiring rich. Stockpiling cash alone probably isn’t enough to get you to retirement with enough savings, and even then, eschewing investing in retirement could lead you to run out of money.

Why you need to invest for retirement

Which of these scenarios sounds more feasible?

1. Save $25,000 per year for 40 years
2. Save and invest $3,000 per year for 40 years

Obviously saving $3,000 is easier than saving $25,000. But by investing that $3,000 in the stock market — even in something as simple as an index fund — you’ll be able to end your 40-year career with about the same amount of money as you would if you’d stuck $25,000 of cash into a savings account every year.

Over the last 50 years, the S&P 500 has produced a nominal return of 9.4%. At that rate, $3,000 per year will turn into more than $1.1 million in 40 years.

In fact, if you want to retire rich, you’ll probably need a lot more than $1.1 million 40 years from now. Even with modest inflation of 2.5%, that amount will be worth just a bit more than $400,000 in today’s dollars. So, saving $25,000 in cash may not even be enough to get you to retirement in 40 years.

Staying there

You might have heard of the 4% rule. It’s a simple way to figure out how much you can spend in retirement. If you hold a portfolio evenly split between stocks and bonds, you’ll be able to withdraw 4% of the starting amount every year without running out of money during a typical 30-year retirement.

Now, you may be thinking, won’t I be able to withdraw 4% for 25 years if I just leave everything in cash? Of course you could, but that strategy has a few big problems. First of all, there’s no inflation adjustment. The 4% rule includes inflation adjustments, so if we have a year of high inflation, you’ll be able to maintain your quality of life by withdrawing a bit more from your portfolio.

Second, the all-cash strategy guarantees you’ll run out of money at 25 years. What if you’re still alive and kicking 25 years post-retirement? You’ll be relying entirely on social security. That’s not what anyone would call a “rich retirement.”

In the vast majority of cases, the 4% rule results in a portfolio nominally larger than the starting portfolio after 30 years. That protects you against living a very long life, may give you some buffer for unexpected expenses later in life, and ensures you have something to leave to your heirs.

Investing your cash is the only way you can realistically obtain enough savings to retire with enough money to fund your living expenses, vacations, and hobbies. And if you don’t stay invested through retirement, you’ll probably run out of money and find yourself pinching pennies later in retirement.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Investing is crucial to retiring rich. Here’s why appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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