Start young! Come on, you didn?t think we were about to slide you some insider trading information, did you? That would be too easy and potentially adverse to your personal freedom ? ask Martha Stewart. Since the odds are not in anyone?s favor of being the next Donald Trump or Warren Buffett, you should plan on getting rich through the power of compounding interest over time.
We know, that?s SO boring. Is having complete financial freedom boring?
If you?re a recent college graduate, this is prime time in your life to get busy investing. Here are some numbers:
1. $10,000 invested at 11% interest for 10 years is $167,220. Not chump change but you?re not going to live a lifestyle of the rich and famous on it either.
2. $10,000 invested at the same rate for 40 years is almost $6 million.
Regardless of which investment vehicle you choose to follow (we prefer the proven superiority of real estate), get busy with it early and often. Squirrel away $10,000 at that interest rate at the age of 20 and you have a guaranteed easy retirement no matter how badly you screw up the intervening four decades. If you continue to resist the power of compounding interest, you deserve to have a coconut fall on your head.
The Young Wealth Team