Case 1:
• $2,000 invested annually in years 1 to 5
• No contributions after year 5
• Assumed rate of return of 10%
• Interest compounded annually.
• All interest is reinvested.
• Total invested $10,000
Case 2:
• No money invested in years 1 to 10
• $2,000 invested annually in years 11 to 40
• Assumed rate of return of 10%
• Interest compounded annually.
• All interest is reinvested.
• Total invested $60,000
You have probably seen similar charts on the front of mutual advertisements and although I’m not a huge proponent of mutual funds I think the underlying message is valid---The earlier you start investing the better.
4 comments:
That's a great post but unfortunately we haven't seen any upodates for 2 months. Did you pull the plug on blogging?
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Sarah
http://www.thinkpadonline.info
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Sarah
http://www.thinkpadonline.info
Hi!
I came across your blog (http://americandividendinvestor.blogspot.com/2008/04/thinking-about-investing-start-now.html) while I was going through some finance blogs. You have shared with us very valuable information, I must say...Being impressed with your blog content, and I would like to place one relevant article in your blog and in return you link in my finance related website/blog. If you allow me to do so and give me an opportunity to show my blog/website to you for link exchange purpose, then kindly.
Contact me at: dorothy786 [at] gmail.com.
Regards,
Dorothy Parker
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