tailieunhanh - The Elements of Investing by Burton G. Malkiel and Charles D. Ellis Dec 14, 2009_2

Tham khảo tài liệu 'the elements of investing by burton g. malkiel and charles d. ellis dec 14, 2009_2', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Save Luck in picking the right time to invest is all well and good but time is much more important than timing. There is always a good excuse to put off planning for retirement. Don t let it happen to you. Put time on your side. To get rich surely you have to do it wisely which means slowly and you will have to start now. Like all financial tools the Rule of 72 needs to be applied wisely. It s great when it s working for you but ghastly when working against you. That s what makes credit card balances so dangerous. With credit card debt 18 percent is the normal interest rate charged. And if you don t pay promptly you ll soon be paying interest on interest and interest on the interest on the interest. Credit card debt is the exact opposite of a great investment. Wouldn t you like to have an investment that compounded at such a rapid rate Of course you would. We all would. At 18 percent a debt doubles in just four years and then redoubles again in the next four years. Ouch That s four times as much debt in just eight years and it s still compounding That compounding is why banks have distributed credit cards so widely to people they don t even know. And that s why you should never ever use any credit card debt. __ 13 __ The Elements of Investing SAVVY SAVINGS We can hear the chorus of complaints already I know that the only sure road to a comfortable retirement is to spend less than my income. I know that regular savings is the key to building wealth but I can t make ends meet as it is In this chapter we offer you some help by presenting a number of savvy savings tips. Still success will be up to you. Saving is like weight control. Both take discipline and both depend on the right framing the right way of thinking about the discipline. Start with a single and powerful insight People who are thin like being thin and people who save like saving. For many the key to successful saving is to see saving as a game a game of control where you put