Comments on: The Most Powerful Force In The Universe: Compound Interest

By: David

David — Sun, 20 Sep 2009 17:30:59 +0000

People could get a guaranteed return rate of 6 percent by paying off their mortgage. So if you cant get a better return than 6 percent, after taxes by stocks then its just better to pay off the loan that you owe the bank.
The return rate for 2008 for the S&P 500 was around negative 36 percent. So there are some risks involved with stocks in the short run.

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By: Roger

Roger — Wed, 29 Jul 2009 19:02:30 +0000

Not a bad topic to consider, at all; too many people overlook just how impressive the gains can be on an investment that just earns ‘normal’ rates of return if you simply give it enough time to grow. (The same for debt, sadly.) I think Einstein may have been exaggerating a bit to make his point (it’s easy to point out that for any group that doesn’t charge interest, compound interest has no power at all), but it’s still a useful concept to keep in mind.

By: Green Panda

Green Panda — Wed, 29 Jul 2009 03:04:03 +0000

Thanks! I’m grateful for Jonathan’s guest post.

By: dawn

dawn — Tue, 28 Jul 2009 15:49:09 +0000

A good post on a topic whose importance is easy to overlook.