Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • My Rifles
  • Concentrate on Dividend Record and Compounding
  • Your Security
  • The Swiss Way
  • Dick Young
  • Debbie Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Your Health
  • Old Confederacy
  • Main Street Conservative
  • BLM’s Marxist Agenda
  • Ron Paul
  • Bank Credit & Money
  • Freedom Force

With This Plan You Can Save More in 8 Years than in 32 Without It

September 6, 2019 By Richard C. Young

By William Potter @Shutterstock

In October of 1999 I explained why there is only one right way to save; early and often. I wrote:

Compound Interest: Your Key to Wealth

Here’s an example of the power of compound interest that I hope you will pass on to your children and grandchildren.

We have two hypothetical investors, Chad and Tad. Chad starts right out of his MBA program investing $1,200 a year starting at age 25 through the time he is 32-years old. He makes eight $1,200 investments. Chad then oddly becomes a monk, ending his savings days. Assume just a modest 9% annual return through age 64, just pre Chad’s 65-year age retirement from monkdom. Chad’s eight years of savings ($9,600) and 40 years of compounded interest provide a final balance of $227,390.

Tad, on the other hand, spends his early years as a ski bum in Telluride and doesn’t start saving until he is 33. But from age 33 until age 65, Tad is able to save $1,200 a year from his job as wildlife conservationist in the remote reaches of Montana. He puts away $1,200 a year for 32 years, giving him a total savings of $38,400—four times the contributions Chad made in only eight years of savings before monkdom. Tad’s balance at the same 9% assumed growth rate is $214,560. Even though Chad invested $1,200 a year for only eight years early in his “career,” because of 40 years of compound interest, Chad’s final savings total beat Tad’s, who diligently socked away the same $1,200 a year, but for a long 32 years.

Such is the power of compound interest. Save early. Save often. And do not compromise your capital. When you lose 50%, you must make 100% on your next investment just to get even. And at that, you have a zero return. That’s stinko math in my book.

So after just eight years of early saving, Chad used compounding to save himself more than Tad could in 32 years of trying to play catch up. Put the power of compounding to work in your portfolio. Investing in companies with generous dividends, and records of regularly increasing those dividends is a bedrock strategy of my family run investment counsel firm.

If you would like to discuss how a dividend-centric investment plan could work for your retirement, please fill out the form below. You will be contacted by a seasoned advisor from Richard C. Young & Co., Ltd. and given a free, no-obligation portfolio review.

Originally posted on Young’s World Money Forecast. 

Related Posts

  • Four More Years?
  • Life Without Gun Rights
  • The Obama Years
  • Author
  • Recent Posts
Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Latest posts by Richard C. Young (see all)
  • Insurrection Was the Furthest Thing from Trump’s Mind - January 15, 2021
  • An Alert for Warm Weather, Wine Loving Mavens. - January 15, 2021
  • We Support Censure of Flake, McCain and Ducey - January 14, 2021

Dick Young’s Must Reads

  • V4 Stands Against North African and Middle Eastern Invasion
  • VIDEO: Carlson “Biden’s Fading Intellect an Opportunity for Democrats Who Want to Control Him”
  • Stunned Democrats Against “Defund Police”
  • Top 10 Political Books #1: The Declaration of Independence and the Constitution of the United States of America
  • Where Have You Been? Now You’re Flying the American Flag?
  • The Case for Individual Stocks: Now More than Ever
  • Why Black Lives Matter Needs to Be Shut Down
  • TAC’s Robert W. Merry Unveils Presidential War Lies
  • Boom—Your Life Changes
  • TAC, Embracing Old and Conservative Principles

Our Most Popular Posts

  • The Coordinated Attack on Free Speech
  • Why Was the U.S Capitol Left So Vulnerable?
  • The Death of the Dollar and America's AA Credit
  • Who's Inciting Violence: Trump or Democrats?
  • Blue Dog Democrats Must Stop the Squad’s Assault on America
  • Enough of the Whiteness Shrieks a Woke Pelosi
  • Why Buying Bonds Matters in Times Like These
  • Media Talk of Impeachment is Absurd
  • Will We Remain a Nation Divided?
  • Was the Capitol Attack a False Flag?

Disclosure

RSS Youngresearch.com

  • The Fed is Sacrificing Retirees to Save the Banks
  • Jim Simons’s Renaissance Technologies vs. Internet Forum Traders
  • February RAGE Gauge: Americans Focusing on What’s In Front of Them
  • Biden Plans to Spend Trillions More on COVID-19 Stimulus
  • There’s Always a Way Forward for Americans Like YOU
  • Overtaken By Nvidia, Intel Fires Bob Swan
  • Do You Remember When NASDAQ Dropped by 82%?
  • Downcast Small Business Owners Prepare for a Difficult Four Years
  • Don’t Be on Their Radar, Get Out of Debt Now
  • Business Owners Must Reassess Relationship with Big-Tech

Insurrection Was the Furthest Thing from Trump’s Mind

Who Are Those Urging Violence?

Are $2,000 Checks Going to Rebuild NYC?

An Alert for Warm Weather, Wine Loving Mavens.

Key West’s Number One Restaurant: The Thirsty Mermaid

VIDEO: Henry U.S. Survival AR-7

Copyright © 2021 | Terms & Conditions | About Us | Dick Young | Archives