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Why should I invest during the next two to three years?
Zeb
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 Zeb,
The sooner you start investing, the more it can take advantage of compound interest. The earlier you start investing, the more money compound interest can make you. Mathematically speaking, compound interest works exponentially or in a geometric progression. In English, this simply means that your money is affected by mathematically multiplied explosion, not by simple addition, such as 1+1=2. Suppose you started investing at age 20 and saved for 45 years until age 65, saving only $65 per month at a 12 percent average annual return (which a long-term growth mutual fund could easily do). In 45 years you would accumulate $1,394,555 for retirement. Compound interest is powerful.
| -- Posted: March 24, 2008 |
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