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Posts Tagged ‘John Bogle’

Matters of Principal and Interest

In Economy on July 26, 2013 at 1:05 AM

July 26, 2013

Here is the math regarding your savings (see attachment).

If you invest $1,000 each year for forty years in an index-fund earning 3% yearly, then your total net return will be $37,663.30 at retirement.  If you invest $1,000 each year for forty years in a day-trading fund earning 3% yearly (one that assumes a typical 2% yearly fee), however, then your total net return will be $12,554.43.
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