Quote:
Originally Posted by mjr24
$5k turns into $225k in 40 years? Uh, no.
At 7% per year....it's $75k after 40 years.
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You are correct. At 7%.
But, compound interest is a marvelous thing.
Run it at 10%. Long term average of the market (Large caps, that is. Mid caps and small caps would be more). Depression, wars, inflation, housing collapses, Democrats, Republicans. It's called capitalism.
Should have been more specific. They don't call compound interest the 8th wonder of the world for nothing.