| DOCTOR 30 |
04-05-2007 06:20 PM |
Quote:
Originally Posted by Lenny2
(Post 12185607)
Actually the principle does apply. You may wish to call it something else but it's the same principle.
If you have $100 in stock and it goes up 10% the first year, then the 2nd year you have $110 worth of stock. If it goes up 10% then you made $11 in profit and the next year you have $121.
No different than a savings account where you reinvest the interest payments and the money "compounds".
Increases in share price and cash dividend distributions work exactly the same as interest for purposes of growing your money. :2 cents:
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Ja we know the principle behind it but the keyword is 'consistentcy'.
Will that 10% or more be consistent?
Bottom line is stash $1 mill away in something you know is stable and will get you 10% compounded. That way when you do have to retire if push comes to shove you know at a minium after taxes you've got roughly $80k to fuck with.
Retirement age is 65 now. I can assure you there are medical breakthroughs coming very, very soon that are going to make your heads swim. We may be looking at ages of 300 or more on average especially for you 20 somethings. What are you going to do when you now have to work past 100 or 200? You make your million and ride it out. Just this week we announced growing new parts for hearts using stem cells. In a year we'll be growing full heart organs and livers and lungs. When we can do that with skin you might as well call it a day. It's going to happen so long, healthy life is inevitable.
55 might seem old to you youngins but that's middle age nowadays and in 10 or 20 years it ain't gonna be that.
Bottom line is WHERE do you invest for security and consistency?
Stocks 'sound' good but stocks crash. |
