The Risk of High Salaries

1) If People Retire between 45 & 50 (instead of 60) as the trend seems to be these days, Employees stand to lose 80% of their Wealth Potential .

2) The 10 years between 50 and 60 Yields the Maximum Wealth for an Employee and losing this decade is not the same as losing any decade. The years between 50 to 60 is the Golden Decade .

3) Companies may treat a loss of a 10 years career span as a 20% reduction  but if one digs a little deeper the real story emerges; ie a 20% Career Reduction saves the Company 80% Salary Cost

4) Thus by truncating an Employee's career duration by just 20%, companies stand to save 80% of salary cost  .

5) This is yet another dimension of Compounding that not many individuals understand.

6) Therefore a very high starting salary actually spells doom for an employee because higher the starting salary brace up for an even earlier retirement making the equation work even better for the Employer (it could actually make the employer save 90% of Salary Cost).

7) The Irony is the best people who have scored the best marks in the academics and who are the smartest succumb to the lure of High Salaries.

https://www.investmentjunctions.com/