Quote:
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Originally Posted by quest1mark
Question:
I'm a recent college graduate and throughout my classes the "time value of money" was thrown around. We learned that by investing $2,000 by the age of 21 with 10% interest compounded annually will get you around $625,000 (give or take a few thousand) by the time your 50.
My question, none of the banks I know offer 10% interest. Do money markets or cd's offer 10% interest?
P.S. I appreciate your comments and insights. Its much easier posting questions than scheduling an appointment with a financial advisor. Hopefully you can help me out with my quandry.
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ive heard the same things, and i too have never seen a bank account offering 10% annually, and probably never will. im sure to get that sort of return you'd have to invest instead of save. i think on the first page of this thread bob mentioned that historically, indexed mutual funds (i think the s&p500 index was mentioned) have shown a return rate of about 10% annually...not sure if various expense fees are factored into this return.
from what ive read and studied so far, a mutual fund seems like the way to go. specifically an indexed fund, with a small percentage invested in bonds and the rest in stocks. lol dunno if that's right or not
