Recent posts tagged ‘compounding’

Another take on “A tale of two investors”

By John Ameriks on February 2, 2010 11:37 am

A few readers had some strong reactions* to my recent post on the benefits of making investment purchases at the beginning of the year, as opposed to waiting until year-end.

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A tale of two investors

By John Ameriks on January 25, 2010 8:12 am

Here’s a pretty simple chart showing hypothetical investment results for two hypothetical investors. Each of them saved $2,500 a year for 25 years, using investment strategies that delivered identical 7% rates of return each year. After 25 years, one investor ended up ahead of the other by more than $11,000. Can you guess why? Read more »