Many Young people live for Today. They really don't fully understand the power of compound interest. The Difference between investing as little as $20 a week at age 20 or waiting until age 50 can be over $3,000,000 (yes 3 Million). Don't wait start today!
Recently I was in a 7-11 and I watched as a young man Purchased $10 worth of Lottery Tickets. As he was walking away from the counter he started talking to me. He told me he just turned 21 and he was going to buy $10 worth of Lottery Tickets for every Pick six as long as he had a steady Job. In Missouri they have 2 Pick Six Drawings Weekly. I said to him Here is my card give me a call and I will show you a surefire way to become a
Millionaire.
He looked at me and said sure sure. I looked back at him and Said I will meet you tomorrow across the street at the coffee shop and Coffee is on me would morning or afternoon be better. He Replied I get off work at 2pm So I can be here at 3pm. I said 3pm it is.
I went home and plugged some numbers in an Excel Spreadsheet. Remember I did promise to make this 21 Year old kid a Millionaire. I was going to do for him what no one ever did for me.
The Results are very telling. If my young friend were to invest his $20 a Week and receive a 10% Return on his investment
- In 20 Years when he is 41 he will have a little over $66,000
In 30 Years when he is 51 he will have a little over $198,000In 40 Years when he is 61 he will have a little over $550,000.In 45 Years when he is 66 He would have a little over 920,000In 50 Years when he is 71 He would have over $1,500,000.
If my young friend were to be able to average a 12% return the numbers are even more staggering
In 20 Years when he is 41 he will have a little over $86,000In 30 Years when he is 51 he will have a little over $307,000In 40 Years when he is 61 he will have a little over $1,000,000.In 50 Years when he is 71 He would have over $3,400,000
The Above numbers are very telling. Not only do they show my young friend the power of Compound interest but the Show my Young friend the Power of Waiting. As an Example if my young friend Continues to Buy lottery Tickets for 10 Years until he 31 and then decides to take my advice and invest the $20 instead of having $1,500,000 when he is 71 at 10% he would only have $550,000. Waiting 10 Years cost him almost $1,000,000.At the 12% Return My Young Friend would loose over $2,400,000 the Difference between $3,400,00 and $1,000,000
Now if my Young Friend were to Play the Lotto for 30 Years and Wait until he is 51 to take my advice he would loose over 3,300,000 at 12% the Difference between $3,400,000 and $86,000.
About the Author
Mike Makler is a Financial Consultant in the St Louis Missouri Area Specializing in Real Estate Loans and Annuities. To Learn More Call Mike at 314 398-5547 or Visit Mike's Web Page: http://ewguru.com/finance
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Copyright ? 2005-2006 Mike Makler