{"id":5495,"date":"2008-09-25T06:02:38","date_gmt":"2008-09-25T11:02:38","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/09\/25\/how-even-small-investments-can-create-big-nest-eggs\/"},"modified":"2008-09-25T06:02:38","modified_gmt":"2008-09-25T11:02:38","slug":"how-even-small-investments-can-create-big-nest-eggs","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=5495","title":{"rendered":"How Even Small Investments Can Create Big Nest Eggs"},"content":{"rendered":"
by Barry Waxler<\/div>\n

We live in the information age, but this often is not a good thing. Why? There is way too much of it. When it comes to investing, it is difficult to know what to do. This is why sticking to the basics is vital if you want to be a success.<\/p>\n

Bring up finances and people go motoring down all kinds of directions. Stocks are best! No, real estate<\/a> is best! Ah, investing in government bonds is really the way to go if you want to make millions<\/a>. <\/p>\n

After a while, it can be easy to wonder not only who is correct, but what you should do with your personal financial situation. Ultimately, the answer is you can make money in nearly every area of finance, but only if you follow some basic rules.<\/p>\n

One of the most basic and fundamental rules in finance is the power of time. Time? You probably have not heard too many pundits and guru talk<\/a> about time, but it is truly one of the key factors in making money in the long run. <\/p>\n

Time is powerful because the more of it you have, the more your money can work for you. As the years pass, you can incorporate gains into your portfolio and have them make money for you as well. <\/p>\n

A good example of this is the rule of seven. It works like this. If you get a seven percent annual return, your investment will double in 10 years. This would appear to make no sense, but it does because your gains are being reinvested.<\/p>\n

The rule of seven is an abstract guideline, but it shows us a simple example of the power of time. Simply put, the longer you have, the better your ultimate return. So, how do you apply this to your life?<\/p>\n

Consider a retirement vehicle as our first example. How about an IRA. If you put $2,000 in annually with a 6.9 percent average return for 30 years, you will end up with a total return of $185,556 when you are ready to retire.<\/p>\n

How about a contrasting situation? What if you start late and invest for only 15 years? You put in more money, four grand, each year and get the same rate of return. You will end up with rough $99,000. That is almost half the other total.<\/p>\n

If you look closely, you will realize something interesting. In both examples, we actually put in the same $60,000. The only difference was the time involved. The longer period allowed our gains to also grow. This is known as compounding. <\/p>\n

You do not have to be a wizard to invest comfortably. The key is to start as early as possible. This is true even if you are just putting $100 a month towards it. As time passes, that money will grow and grow and so will your nest egg.<\/p>\n

\n
About the Author:<\/div>\n
Succession planning<\/a> is a critical step to making your business survive you. Barry Waxler with UFCAmerica.com provides succession plans that make sure that happens.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

We live in the information age, but this often is not a good thing. Why? There is way too much of it. When it comes to investing, it is difficult to know what to do. This is why sticking to the basics is vital if you want to be a success.<\/p>\n","protected":false},"author":2157,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[77],"class_list":["post-5495","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5495","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/2157"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5495"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5495\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}