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RE: Compound Interest: Fraud or Greatest Power in the Universe?
Thanks for another post @wrashi. It was my first time learning about 'Simple Interest' but I got a little confused about what your point was with mutual funds.
- Are you saying that mutual funds don't pay Compound Interest?
P.S. You can get free photos from Pixabay for your posts. It might attract more readers.
Thanks for the tip and the feedback, @chrisrice!
You're right on both counts -- that section is a bit confusing and my posts would benefit from some photographic colour!
I'm afraid I let my passion for topic overwhelm me at the end.
I think I'll take a page from your book, edit and repost.
What I was trying to say is that many of the people that are retiring right now purchased mutual funds that were heavily slanted towards stocks that appreciate in value, but don't produce income.
This makes sense as the quick increase in value made people feel like they were winning.
What's happening, though, is that approximately 1,000 people/day here in Canada are retiring.
They're looking into their mutual fund statements and not finding the millions of dollars they expected.
While their portfolios have grown, that growth has all been the simple interest of value appreciation, rather than the compound interest that income and reinvestment provides.
Some of these people are truly devastated to find that their retirement is going to be as hard as the rest of their life.
Most times their advisors didn't understand the simple difference between simple and compound interest, so couldn't have given them better advice.
On a personal note, I recently had to explain this difference to my father, who has training as an accountant.
He just couldn't figure out why his money hadn't grown the way he thought it should.
The look on his face when he realized the simple mistake that cost him massive amounts of money was really heartbreaking.
Thanks for the clarification @wrashi and yeah, I try to make each post a final product the moment I publish it but I often find that I need to edit and revise it afterwards.
I read in a book once that writing is about rewriting, not so much just writing. I try to do the rewriting before I publish but it doesn't always work out that way.
You have a lot of valuable experiences and lessons that you can share with the Steem blockchain and I enjoy them so much 👍
Thank you ✌️😊
Great advice, @chrisrice. Thanks!
I'm finding that I don't write and re-write as much as I should, so I don't have as much to post. You seem like a busy guy. When and how do you make time for writing?
I'm not that busy @wrashi.
Most of my time is spent with my family and I require a lot of sleep but I still have time to write.
I also only write longer, more intensive posts every once in a while.
Usually my posts are just about my family or something simple like that.