Quote:
Originally Posted by Stu from NYC
Not just interest is taken into account.
If the stock market on average goes up say 8% a year for the past 50 years and lets say you want to have a million dollars in investments by the time you retire in 30 years it gives you an idea of how much you need to put into investments each year.
Of course in the short run the results will vary greatly.
It is a very handy tool.
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Does the word “Ponzi” ring a bell?