Thoughts and Riches

.....a blog about personal finance, motivational stories, deals, and special offers

Free Sweepstakes
Web Domain Registration
Go Daddy $12.99 Turbo SSL Sale!
Trusted by over 7 million customers!
Get Started Now
GoStats stats counter
GoStats stats counter
Search Engine Submission
Search Engine Submission - AddMe
Free Search Engine Submission
Free Search Engine Submission
Free Search Engine Submission
Free Search Engine Submission
Tuesday, February 06, 2007
Converting $8,000 to $1 million's article discusses how an investment of $2,000 per year for four years can become $1 million by the age of 67! The key – starting early. In this case, starting the investment of $2,000 at age 16 and continuing to do so for a total of 4 years.

The article also assumes $2,000 is invested in IRA, so you don't have to worry about taxes and that the money earns 10.7% - supposedly the average compound annual rate on large-cap US stocks.

Of course, if you want to put money in IRA, you need to make sure that you have earned at least $2,000 by working if you want to put that much amount into IRA (since IRA requires that money invested put in the IRA account must be from earned income rather than from interest income, etc).

The article again brings up the magic of compounding. The important thing is to start early. Wish, most of us had understood this magic when we are in our teens!

For a similar post on the magic of compounding, check out:

The high cost of procrastination
posted by Ruby @ 7:00 AM  
Post a Comment
<< Home

See important Disclosure and Disclaimer

Favorite Quote
"If you look at what you have in life, you will always have more. If you look at what you do not have in life, you will never have enough".
                - Author Unknown
This site uses cookies from companies like Google and others to enable the companies to deliver their services, personalize their ads and product offerings, and for traffic analysis. Information about your use of this site is shared with these companies. By using this site, you agree to its use of cookies. Additionally, this site, including blog posts, may contain reviews, links, banners, text and other forms of advertisements for products, services, courses, and so forth of companies of which we may be an affiliate member or for which we may get paid for referrals. This site may also contain blog posts for which we are paid, as well as blog posts regarding products or services of companies from which we may have received complimentary products or services.
Reward Surveys/Panels/Shopping/Contests
Kellogg's Coupon Newsletter - Take Control of Your Money
Protect Your Computer Files
Job Search site
Indeed Jobs
Yahoo! HotJobs - Job Postings
Credit Cards
Best Western Canada Credit Card - 20,000 rewards points: Apply Now!
Apply Now!
Health: eHealthInsurance
Phone Service
Investing 120x120 Best Seller Giveaway
Find the perfect babysitter at
Previous Posts
Favorite Charities
Disclaimers, Privacy Notice and Disclosures
  • Disclaimer, Privacy Notice and Disclosures

  • Third-Party Offer Disclaimer
  • Subscribe to Blog Posts
    Add to Google Reader or 

    Bookmark this blog site
    Contact Me


    Web Site Link Exchange

    Link Exchange

    © Thoughts And Riches proudly powered by Blogger.