Question
Compute the future value of $6750, which is invested for 65 years at an annual rate of return of 8%. Show your formula and steps.
- Compute the future value of $6750, which is invested for 65 years at an annual rate of return of 8%. Show your formula and steps.
- Based on Berkshire 2019 annual letter, the average annual rate of return for S&P 500 with dividends included is 9.7%. If you invest $10,000 now into a no-fee index fund which mimics the performance of S&P 500, how much is your account worth when you are at the age of 70?
- Explain the power of compounding interest and why its important to save now.
- Both articles mentioned about index fund investing. Explain what is index fund investing and why index fund investing is smarter than investing in actively managed vehicles, such as mutual funds, hedge funds, etc.
- Whats the investor lesson you learned from both articles?
- Bill Ackman on saving capitalism_ Every child in the U.S. could be given enough money at birth to become millionaires by retirement - MarketWatch-1.pdf
Berkshire Annual letter2019.pdf
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The Charles Schwab Guide To Finances After Fifty
Authors: Carrie Schwab-Pomerantz, Joanne Cuthbertson
1st Edition
0804137366, 978-0804137362
