Too Young to Think About Investing? Think Again!
“How did it get so late so soon?” — Dr. Seuss
Dr. Seuss’s whimsical take on life has been delighting children of all ages for generations. His simple, but powerful words continue to resonate today, even in the context of planning for a financially secure future. Because when you get right down to it, the younger you are, the more you potentially have to gain by taking advantage of the time ahead of you.
Compounding: A Snowball Effect
The word compounding describes what happens when your investment earns money and this amount is reinvested and generates more earnings. The process of compounding has often been compared to the way a snowball grows as it rolls downhill. You might say that a longer investment time frame is akin to a bigger hill, because each creates conditions for greater growth potential.
Time and Compounding — A Simple Equation
One easy way to estimate how long it may take for compounding to help double the value of an investment is to use the “rule of 72.”
Here’s how it works: Divide 72 by the rate of return earned by an investment. The number you end up with equals the approximate number of years it would take for the investment to double in value, assuming it continues to earn the same return. For example, an investment earning an 8 percent annual return would double in value in about nine years (72/8 = 9).
Stay in it for the Long-Term
While past performance cannot guarantee future results, it’s worth noting that longer-term holding periods have often been associated with a lower likelihood of portfolio losses.
© 2016 DST Systems, Inc. Reproduction in whole or in part prohibited, except by permission. All rights reserved. Not responsible for any errors or omissions.
For more information, please call Householder Group at 661-297-7566.
ADVERTISE WITH US
A Note From the Publishers – April 2024
We simply couldn’t resist! Our covers are in high demand, so this month, we are thrilled to feature four non-profits, each promoting their upcoming events. Each event offers its own unique experience, showcasing the diversity of our community.First on the list...
Wine on the Roof Returns on April 25, 2024
\Wine on the Roof will take place on Thursday, April 25th from 6:30-10pm at The Centre (the former Sports Complex at Golden Valley/Centre Pointe Parkway in Santa Clarita). This unique fundraising event benefits the WiSH Education Foundation and features a SIX...
SCV Senior Center Prepares for Celebrity Waiter Celebration Saturday, April 27, 2024
The SCV Senior Center is preparing for their annual fundraising event – Celebrity Waiter – with the theme – “California Dreamin’” on Saturday, April 27th at Bella Vida. Table Sponsorships are still available.The headliner for the event is “Surfin’” – A Beach...
ABOUT THE MAGAZINE
Santa Clarita Magazine has set a high standard for excellence in advertising for over 34 years. A family owned and operated business, Santa Clarita Magazine has grown with the Santa Clarita Valley since 1990 and become the #1 place to advertise locally.
FOLLOW US
SANTA CLARITA MAGAZINE
PO Box 801570
Valencia Ca 91380
For Advertising information
Call or Text: 1 (661) 294-4444