Compounding: The Science Of Exponential Money Generation

Written by Martin Thomas


It all begins with a simple calculation.

You are home on a rainy Sunday afternoon, looking atrepparttar flashy calculator you found on sale last month for $12 atrepparttar 141898 local buy n’ save. It was a good buy.

You findrepparttar 141899 percentage button, and try to decipher how it all works.

Before long you are calculating percentages like a pro.

An hour later, you stumbled across an idea everyone with a calculator on a rainy Sunday afternoon stumble across. That of calculatingrepparttar 141900 money you have squirled away atrepparttar 141901 local bank branch in a fixed term savings account. You recallrepparttar 141902 rate was guaranteed 7% and even though you are only locked in for 12 months, you decide this money will become your retirement fund. All $3000 of it.

So you start crunchingrepparttar 141903 numbers for ..oh, say 30 years.

In 30 years, you calculate that it will become $22,836.76 Wow! even if you do nothing. Not bad.

A show comes onrepparttar 141904 television that grabs your attention, and your calculator is absently passed ontorepparttar 141905 coffee table as you get comfortable, and get set to watch “The most dangerous animals on earth-a ten point count down”.

You watch, butrepparttar 141906 calculator sits patiently within your line of sight. During one ofrepparttar 141907 ad breaks, you get another idea.

What if you could find some other investment vehicle to grow your money? What if you could find somebody that offered more interest?

You don't know where you will find somebody willing to offer you this much interest but you try it anyway....30%

30% at 30 years.

Wow. $3000 turns into $7, 859,983! Wow! you hum to yourself. You begin to pay a lot of attention to your calculator,repparttar 141908 TV show is up to number one,repparttar 141909 most dangerous animal onrepparttar 141910 planet is........you don't care. You don’t even hearrepparttar 141911 television.

My Way Or The Highway: Give Your Financial Professionals A Good Talking To!

Written by Martin Thomas


All this talk about Investing is encouraging lately. Overrepparttar last few years, more people have become interested inrepparttar 141897 duty to invest there money, then ever before. However, when you follow most investment offers to their logical conclusion, they are disgustingly futile.

Yet, many people take up these "offers" nonetheless. Why?

As I mentioned atrepparttar 141898 opening comments. We really aren't interested inrepparttar 141899 investing, itsrepparttar 141900 compounding we want. Itsrepparttar 141901 compounding of our seed capital over a specified amount of time that producesrepparttar 141902 results for us. When most people refer to investing, they really mean compounding their money.

The government accredited investment advisors and other peddlers of paper financial tools offer 7% compounding where ever you go. Didn't anybody tell them we dont live for 200 years? Thats how long it would take to see any reasonably interesting return. Even then, in 200 years, inflation would eat up half ofrepparttar 141903 gains. Why do so many settle for these returns?

Maybe lack of choice. But I believe we have simply swallowedrepparttar 141904 line "the higherrepparttar 141905 rewardrepparttar 141906 higherrepparttar 141907 risk" Therefore,repparttar 141908 logic goes, settle for a very small 7% compounder, and my money will be safe. (Whether it is or not, is a matter forrepparttar 141909 Gods)

Its just not so. Many low yielding investments are VERY risky.

Want to know what they really mean by that statement? "The more in control of your own investments you are,repparttar 141910 higherrepparttar 141911 reward andrepparttar 141912 higherrepparttar 141913 risk TO US-our job, our profits" (the investment advisors jobs,repparttar 141914 investment advisors profits)

CONTROL isrepparttar 141915 financial key to rapid asset growth... compounding. Its just so confusing for most people. They seerepparttar 141916 polished brochures, and marble floored offices, andrepparttar 141917 pristinely groomed secretaries, and believe these guys MUST be good. Yes they are good, they are good at getting business for themselves. So we work very hard in our jobs/small businesses, trying to aggregate together some funds to hand over to them.

Well, those of us that refuse to become professional investors anyway.

YOUR CONTROL OF YOUR FUNDS

The absolute truth. Completely unbiased, unspoiled, honest to holy, highest of accuracy truth, is that you can do 100 times better then whats on offer. Its possible, it happens and you can make it happen too.

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