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Compounding Your Interest: How To Increase Your Saving’s Return
One of the most pervasive answers I hear about why people aren’t saving more, is that savings “just sit there.” They don’t do anything. With the many classes and the lectures I do, it never ceases to amaze me when I hear that.
And while other excuses run the gamut from the high cost of living to sheer apathy – the fact is, most Americans don’t really understand saving. Many believe that it’s just too risky to put your money in the market right now. On the other hand, if it’s in a CD, money market or savings account their money…
17Mar2009 | Investment U | 0 comments | ContinuedTHE BATTLE FOR INVESTMENT SURVIVAL
An introduction to the principle of compound interest shows that, an investment that returns a 5% or even 3% rate, over centuries, eventually attains a colossal sum. A million dollars – a decent house these days – invested at a mere 3%, becomes $136 billion in four hundred years. At 5%, it would be $299 trillion.
This doesn’t mean that it is easy to make money. Rather, it demonstrates that it is hard. I don’t know a single example of significant success with this simple strategy. Why not? Many things can happen in four centuries. One thing that seems to happen, with…
4Sep2008 | Daily Reckoning | Comments Off | Continued
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