It’s better to know how to invest than to save
I you started with $5,000 and got an annualized return of 25%, in 25 years you would have roughly $500,000 . If you got a return of 10% you would have about $50,000. If you expect to get a return of 10% but want to have $500,000 in 25 years, you would need to save $5,000 every year for those 25 years.
I’m not saying that getting a 20% return over that long of a period is easy or even possible for most people, but it is certainly worth learning as much as you can about investing in order to increase your returns. It makes such a big difference over a long period like 25 years that you might as well take a year off from work to learn how to invest better.
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You’re currently reading “It’s better to know how to invest than to save,” an entry on Timothy Pereira
- Published:
- February 16, 2008 / 8:40 pm
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- Investing
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