Why Should We Invest Part 2
Author: Rie Moretti
Many women may previously not have thought of missing superannuation contributions as being a problem, as their husbands may have been contributing to the final when they first started to work. Unfortunately, however, with the large number of divorces in this country, it is unwise to rely on your partner? s superannuation will be there for you in your retirement years, and although a large proportion is awarded in a settlement? that it would be sufficient to sustain a comfortable retirement for longer.
All these factors are why women now more than ever need to begin taking steps to build a source of ongoing income that will grow to such an extent that could provide a safe and happy future for themselves and their children .
it must be a source of income that is unrelated to physical work? has an income derived from income producing assets? and not from our personal efforts. One of the best sources of creating this ongoing income stream is to start building an investment property portfolio, also aptly rephrased as bricks and mortar.
we have to start investing in income producing assets now, they’ll have time to grow and evolve, so we will be financially independent for our retirement years.
The most important thing to know in connection with building wealth for retirement and to provide finances which can be directed towards charity, or helping your family is that of compound interest.
in mathematical terms 72 divided by the compound interest rate = years for money to double in value.
Therefore, if you have $ 1000.00 invested at 10% interest, then the number of years it will take for your money to double to £ 2000.00 is 7.2. it would quadruple in 14.4 years and be worth 8 times as much in just over 21 years.
if your money is invested at 7% interest, so it will take about ten years to double in value. if it is invested at 5% will double in just over fourteen years.
the two most important aspects of compounding are one: rate and two: time. The higher interest rate and the longer there is anything left to compound, the greater the final result will be. this is why the sooner we start investing, the better.