Have you wondered why financial experts only tell you certain things about building wealth? Do you think its in their best interest to tell you the absolute truth?
LIE: The Magic of Compound Interest: Save $X per month and you can retire RICH.
FACT : Compound Interest works only for the very few. The very few who began investing in their 20’s and NEVER, EVER, EVER STOPPED. They didn’t stop when they bought a car, house. Got married, had kids. Paid lots of bills, mortgage payments, loan payments, credit card payments. For the rest of us life expenses cost money, and so your savings account that you had been contributing monthly to gets sucked dry.
You’ve also seen the magical compound interest investment chart:
Invest $X/mth and after 10 yrs you’ll have good cat food money.
Invest $X/mth and after 20 yrs you’ll have gourmet Kraft dinner.
Invest $X/mth and after 30 yrs you’ll be a millionaire.
Invest $X/mth and after 40 yrs you’ll be a bazillionaire.
Now follow me closely on this next point…
Who in the HECK wants to work for the next 40 yrs and has the DILIGENCE to continuously invest monthly without stopping your contribution or WITHDRAWING any money at all.
Listen…The magic of compound interest benefits YOUR BANK. There I said it.
YOUR BANK loves compound interest. Guess what they charge you on your mortgage? Guess what they charge you on your credit cards?
I would smile if I was the bank president to.
#1. Today’s investors don’t have the patience to let compound interest work its real magic.
#2. The market’s haven’t been exactly going up in the last few years either…
So, what can you do to COMBAT the lie about compound interest?