That could be true for many investment strategies, but it's not true for compound interest. Compound interest is more of a mathematical formula than a strategy.
@magicmindman If everyone creates money at the same rate, than that money created is not worth anything. The interest would simply be the rate of inflation.
@bigmoneyjby, Inflation affects all investments. This doesn't negate the fact that it is best to start investing early if you want time and compounding interest on your side. Not everyone will choose the same investments.
@magicmindman Never said it wasn't bad to get invested early. I'm just saying that once everyone does the same investment, the Future Value of that investment is gone.
@bigmoneyjby, I see. I still gotta agree with BrenttheGreat though -- it would be nice if more schools taught basic investment and money management skills. I think if more people could handle their budgets properly, we'd all be better off.
That may be true, but if you load up on equities during the downturn, you will get interest rates in the 20s-30s when it swings up again. Those high rates balance out to about 15% APY on investments in the American stock markets.
You're absolutely right. This should be taught in primary school. School teaches kids to be mere employees. Wealth building is left to parents to teach, which is obviously irresponsible since many parents are as clueless as the kids are.
@BrenttheGreat If everyone does it, then it doesn't work.
bigmoneyjby 2 years ago
That could be true for many investment strategies, but it's not true for compound interest. Compound interest is more of a mathematical formula than a strategy.
magicmindman 2 years ago
@magicmindman Inflation.
bigmoneyjby 2 years ago
@bigmoneyjby, what about inflation?
magicmindman 2 years ago
@magicmindman If everyone creates money at the same rate, than that money created is not worth anything. The interest would simply be the rate of inflation.
bigmoneyjby 2 years ago
@bigmoneyjby, Inflation affects all investments. This doesn't negate the fact that it is best to start investing early if you want time and compounding interest on your side. Not everyone will choose the same investments.
magicmindman 2 years ago
@magicmindman Never said it wasn't bad to get invested early. I'm just saying that once everyone does the same investment, the Future Value of that investment is gone.
bigmoneyjby 2 years ago
@bigmoneyjby, I see. I still gotta agree with BrenttheGreat though -- it would be nice if more schools taught basic investment and money management skills. I think if more people could handle their budgets properly, we'd all be better off.
magicmindman 2 years ago
I KNOW A WAY IF U ARE IN THE MILITARY SDP!
yellaonel 2 years ago
Where the fuck would you find 10% interest at this struggling enconmey! Best you would find would be like 3-4%!
Shark142 4 years ago
The market has up and downs. Overall, history shows that the market has grown around 10% over the many years.
magicmindman 4 years ago
That may be true, but if you load up on equities during the downturn, you will get interest rates in the 20s-30s when it swings up again. Those high rates balance out to about 15% APY on investments in the American stock markets.
dkmdlb 3 years ago
You're absolutely right. This should be taught in primary school. School teaches kids to be mere employees. Wealth building is left to parents to teach, which is obviously irresponsible since many parents are as clueless as the kids are.
learningtoinvest 4 years ago
Good point!
Astromarket 5 years ago