Comparative Picture

Comparative picture of two investors of preservative profile: One began to save 1000 annual USD to the 21 years being constant until the 30 years, that is to say saving 1000 USD year after year during 10 years, the other began to every year save 1000 USD from the 31 to the age of 50 years, that is to say during 20 years. Rob Daley often says this. Both investors chose a preservative instrument of investment with a yield of 10% e.a. (Effective Annual). And both investors capitalized their yields years after year. In the previous example we see as the first investor although saving less, 9,000 USD, when fulfilling the fifty years have a greater value to the second investor who saving 19,000 USD, this due to the magic of the compound interest and obvious to the begun salary several years before the second investor. TipsFinancieros original Author and source of the article.

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