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Power of Time |
April 11, 2000
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INTRO
PRIMARY TIDBITS
POWER OF TIME
QUESTIONS
NO SECRET
MUTUAL FUND
MORE TIDBITS
RETIREMENT METHODS
MISC
| Example of Compounding the Return on your Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Let's say for example, an amount of $100 is periodically invested each month into a stock mutual fund which produces a 10% annual return. For a long term aggressive growth stock mutual fund, a 10% return is reasonable | over long term periods (I say at least 5 years, but more than 10 years is even better). Here are the results of this hypothetical investment strategy: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investing $100 month at a 10% annual return
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Oh sure, you say 10 or more years is too far away to think or worry about it now. But try to remember an event of your life that happened 10 years ago. Ten years of time doesn't seems so far away now, when you look in the past, does it? |
If unfortuately, you have financial problems now, still attempt a minimal amount of monthly investments. Your situation will only get worse if you don't suffer a little more now. Are you ready to start? Let me just make sure I don't talk you into hurting yourself by answering some questions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||