Building wealth is a function of amount invested, the rate
of return and time. Yesterday, I illustrated
how much 10%, which represented the potential return of an index mutual fund,
can get you over time given a $1,000 investment. Today, I will illustrate what
15% can do for a single $1,000 over time. It takes a little investing skill by
investing in solid publicly traded companies, risk taking and luck to get these
returns and is definitely not guaranteed (table below).
|
$1,000 Amount
|
||
|
Time
|
Rate
|
Amount After Compounding
|
|
10 Years
|
15%
|
$4,045.56
|
|
20 Years
|
15%
|
$16,366.54
|
|
30 Years
|
15%
|
$66,211.77
|
|
40 Years
|
15%
|
$267,863.55
|
|
50 Years
|
15%
|
$1,083,657.44
|
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