1. Compounding

[adikiny]

Great lecture. Makes learning much easier and really interesting.

[zyrstn]

is it a good idea to compound on a mutual fund

[savingandinvesting]

A mutual fund can provide exposure to many stocks and/or bonds at the same time and is very common way for individual investors to invest in a market or certain parts of market. Things to bear in mind include: active vs. passive mgmt, fees, time horizon, dollar cost averaging, whether it makes sense to invest in mutual funds through a tax efficient vehicle like a 401k. Please see videos on mutual funds, tax, 401k etc. (list via link from main channel pg) - also in book - hope that helps. Michael

[23580578H]

i just love this concept ,,,,i will implement this in my real life ,,,thankxx buddy

[ExquisiteDoom]

Compounding is key to financial success. The faster the rate of successful compound, the greater income. Great video, grants me the ability to better explain this mathematical exponential phenomenon as well!

[jayangli]

One invests for ten years got more money than the other who invests for twenty years?

[savingandinvesting]

In the example - the one that invests for 10 years, starts earlier and then the money is just left to compound. Starting early is the part that the example is highlighting using the numbers shown. After 10 years the money is still compounding (i.e. growing) just no additional sums are being added. I hope that helps - best regards, Michael.

[MrTheLOLOL]

@savingandinvesting one of them makes contributions (the same or linear) for 20 yrs and one 10 yrs, but the 20yr linear one only lets compounding for 20yr, the 10yr linear person 30yr compounding but compounding is faster than linear.

[shaunshaun88]

if u could multiply your money by 6-7times every 10 years, you could be a billionaire after 50 years with an initial investment of 100k, by the end of 50 years, u would have 800million in your bank if it is being compounded at rate of 20% per annum annually....

[piecharthosen]

@shaunshaun88 two things:

you're assuming the rate of return is the same for the entire time

second, you said 20% return - usually you don't get that consistently

additionally there are issues to discuss such as inflation rate

[shaunshaun88]

10000 compounded at a 15% rate annually for 30 years would gives us $662,117.72 ......enough for anyone to survive even 4% of it in a bond for a year, saving the rest of your salary for emergency use, the 4% can pay off your bills and food and temporary pleasure...also set aside some money to keep compounding them so that u will not lose out in inflation. These money can be kept for future generation

[Johnyrusly]

Thanks!!

[mckronic]

im 20 years old and im going to star investing $2500 a year diversified over high-low risk stocks, bonds, mutual funds and GIC's. Thanks a lot for the videos it is arming me with the knowledge so I stand a chance when I go to an investment firm.

[jamal22066]

start a ROTH IRA, kid. $100 a month will get you about a million by the time you're 55. You'll be glad you did it.

[jamal22066]

sorry....not 55.....65

[Raimunelar]

You exhibits are very blurry, otherwise precious info. Thanks

[whassan84]

yes i would say u can post a link in the discription for the figures.

[teknician1]

I also wich the illustrations could be legible or at least "tell" us what the figures were. I wanted to know how much person A made over person Z during the 10 vs 20 years of saving.

Other than that, great info.

[HiwayHauler68]

well said,yea your numbers are impossible to see.

[randomDudeDeux]

5 - stars. Could you make the illustrations more legible though?