Click to go to Forum Home Click to go to maXbimmer Home

Go Back   maXbimmer Forums > Misc > Off-topic
User Name
Password


Welcome to Maxbimmer.com!

You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!

Reply
 
Thread Tools Rate Thread Display Modes
Old 02-16-2006, 10:56 AM   #1
BlitzSix
6 Speed
 
Join Date: Dec 2002
Location: Toronto
Posts: 3,405
Send a message via AIM to BlitzSix Send a message via MSN to BlitzSix
real eye opener..



I just saw this over on bimmerforums, thought you guys might enjoy. We all knew that starting to invest early was great and all, but this really puts it into perspective. Huge difference. I guess that's why some poeple that are smart with money end up being wealth while others end up working their ass off and being in debt all the time even though their salary might be bigger.



There's the link to where it was taken from:

http://ww2.dowtheoryletters.com/DTLO..._poor_man.html
BlitzSix is offline   Reply With Quote
Old 02-16-2006, 11:01 AM   #2
Gullwing
2nd Gear Member
 
Join Date: Feb 2004
Location: Mississauga
Posts: 246
Send a message via ICQ to Gullwing Send a message via Yahoo to Gullwing
There are only two ways to get rich: marry a rich woman, or work for 20 years then marry a rich woman.
__________________
"Drivers in Lebanon often maneuver aggressively and pay little regard to traffic lights and stops signs" - U.S. Department of State, Bureau of Consular Affairs Consular Information Sheet.
Gullwing is offline   Reply With Quote
Old 02-16-2006, 11:02 AM   #3
2slow2race
6th Gear Member
 
2slow2race's Avatar
 
Join Date: Nov 2003
Location: Mississauga
Posts: 1,411
how does that work?
he invested 2000 dollers per year?

please explain
2slow2race is offline   Reply With Quote
Old 02-16-2006, 11:02 AM   #4
jstalin
capitalism=crisis
 
jstalin's Avatar
 
Join Date: Jan 2005
Location: Via Dolorosa
Posts: 3,087
Money wasn't meant to waste on stocks and paper bonds, it's meant to be invested in fast cars, drink and girls.
__________________
Rise with your class, not above your class
̿ ̿̿'\̵͇̿̿\o=(̪●)=o/̵͇̿̿/'̿̿ ̿
jstalin is offline   Reply With Quote
Old 02-16-2006, 11:06 AM   #5
BlitzSix
6 Speed
 
Join Date: Dec 2002
Location: Toronto
Posts: 3,405
Send a message via AIM to BlitzSix Send a message via MSN to BlitzSix
Quote:
Originally Posted by 2slow2race
how does that work?
he invested 2000 dollers per year?

please explain
Which part don't you get? They both invested @ 7% (+ 3% / yr growth), so like 10%. BUt one started way earlier and one started later. The first guy made the same as the other guy even though he invested 14 Gs while the other invested 88 Gs because the first guy started earlier and that's what compounding does.

The article is pretty interesting.
BlitzSix is offline   Reply With Quote
Old 02-16-2006, 11:22 AM   #6
///Milk
BangSentra
 
///Milk's Avatar
 
Join Date: Feb 2003
Location: California
Posts: 7,777
Send a message via ICQ to ///Milk Send a message via AIM to ///Milk Send a message via MSN to ///Milk Send a message via Yahoo to ///Milk Send a message via Skype™ to ///Milk
Quote:
Originally Posted by 2slow2race
how does that work?
he invested 2000 dollers per year?
please explain
Person on the right only threw in 14,000.
Person on the left threw in 80,000.

Person on the right ends up with 930k.
Person on the left ends up with 893k.


My dad showed this to me a while back....it's interesting.
__________________

///Milk


2006 Nissan Sentra 1.8S
2009 Ford Focus SES Sedan
///Milk is offline   Reply With Quote
Old 02-16-2006, 11:24 AM   #7
///MAC
Scuderia Ferrari Marlboro
 
Join Date: Jan 2004
Location: Toronto
Posts: 3,882
so where did he keep his money, to make that kind of interest???
///MAC is offline   Reply With Quote
Old 02-16-2006, 11:25 AM   #8
PelicanGolf2
Stuck in traffic
 
PelicanGolf2's Avatar
 
Join Date: Dec 2004
Location: Burlington
Posts: 367
Got to start at 20 years old eh? I guess the top part was cut off where it said that it was taken from the bank of Mom and Dad. Really how many 20 year olds have 14000 invested, of their own money. I guess some people just get shat on.

Anybody else read the Wealthy Barber??
I have friends that talk about this all the time, they forget that mom and dad bought them a car, paid for school etc. Virtually no debt until they reach 25. I on the otherhand got right in debt at the age of 18 and still am and probably will be until I am 65.

Last edited by PelicanGolf2; 02-16-2006 at 11:29 AM.
PelicanGolf2 is offline   Reply With Quote
Old 02-16-2006, 11:51 AM   #9
Deep 3.2TL
6th Gear Member
 
Deep 3.2TL's Avatar
 
Join Date: May 2004
Location: Milton
Posts: 3,228
You don't have to have $14K at 20, it's $2K per year... At 20 I could have afforded that, $2K isn't a heck of alot. I started my RRSP's at 23, so I'm in the middle of that curve...

Deep
Deep 3.2TL is offline   Reply With Quote
Old 02-16-2006, 12:19 PM   #10
BlitzSix
6 Speed
 
Join Date: Dec 2002
Location: Toronto
Posts: 3,405
Send a message via AIM to BlitzSix Send a message via MSN to BlitzSix
Quote:
Originally Posted by ///MAC
so where did he keep his money, to make that kind of interest???
I think it's for retirement savings, so the RRSP or whatever pays good interest I think. I honestly havent' done much research about it though. Plus your company should help you out (don't they match your contribution or somethign??).

Pelican: As Deep said it's just 2Gs per year for only 6 years. I'm 18 and in debt also (OSAP), I have my own car that I payed for and pay for all insurance (over 3Gs a year), phone (600/yr) and gas (1G/ yr ), and I still plan to save at least 2k this summer. I guess I'm in a better position than some since my OSAP loans don't have ot be paid off for a long whil eand the interest is low anyways, and I also still live at home so I don't have to pay for food, rent, utility bills, etc... but 2Gs a year is only 166 a month. If you work full time then that's nothing at all. If you work part time and go to school, well work a lot in teh summer and try to save it.

Thing is this doesn't count for inflation but shit, 66 fold return is still amazing. Especially since this considers only investing 2Gs a year for 6 years (VERY conservative). If you keep investing after 25 and up the ante a little you're living a DAMN comfortable life when you retire..
BlitzSix is offline   Reply With Quote
Old 02-16-2006, 12:58 PM   #11
Miguel
...Delt Smash
 
Miguel's Avatar
 
Join Date: Oct 2002
Location: Dudebridge
Posts: 10,882
ok, someone point me to where I can invest my $$$ at 7%
__________________
Miguel is offline   Reply With Quote
Old 02-16-2006, 01:00 PM   #12
Deep 3.2TL
6th Gear Member
 
Deep 3.2TL's Avatar
 
Join Date: May 2004
Location: Milton
Posts: 3,228
Average mutual funds and bonds tend to yield a higher rate over time. Remember, it doesn't HAVE to be 7% every single year. It will flucuate.

TD has a pretty good portfolio with some positive returns.

Deep
Deep 3.2TL is offline   Reply With Quote
Old 02-16-2006, 01:01 PM   #13
Deep 3.2TL
6th Gear Member
 
Deep 3.2TL's Avatar
 
Join Date: May 2004
Location: Milton
Posts: 3,228
http://www.tdcanadatrust.com/mutualfunds/mf_2006.jsp

Here you go...
Deep 3.2TL is offline   Reply With Quote
Old 02-16-2006, 01:09 PM   #14
PelicanGolf2
Stuck in traffic
 
PelicanGolf2's Avatar
 
Join Date: Dec 2004
Location: Burlington
Posts: 367
Okay, Yes I know $2000 isn't alot of money, right now $166 buck a month is nothing, but when I was 20, even $50 bucks saved didn't last long. Maybe I just didn't get off to the right start when I was young, no help from parents, no OSAP. Rasie your hand if you parents helped you out at that age............. Exactly almost everybody right?? What somebody needs to do is come up with a financial savings plan for people with no money, those are the people that will work until they are 65-70, never really retire, living off of what seems to be a farce of a Canadian Pension Plan. Money Sucks, there are better things in life.
PelicanGolf2 is offline   Reply With Quote
Old 02-16-2006, 01:12 PM   #15
BlitzSix
6 Speed
 
Join Date: Dec 2002
Location: Toronto
Posts: 3,405
Send a message via AIM to BlitzSix Send a message via MSN to BlitzSix
I understand your logic of the "there are better things than money" but don't agree with the your theory on how to battle that..

Instead of saying "there are better things than money" and working 24/7 to work your ass off being in debt all the time it's wiser IMO to "money sucks" but then realize you do NEED it, and do some research, make some smart decisions and then you won't have to worry about money (since u will have some) and then you will be able to enjoy the freedom that comes with having money and thus will be able to enjoy the "better things in life than money" like you said
BlitzSix is offline   Reply With Quote
Reply

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump


All times are GMT -4. The time now is 03:30 PM.


Powered by vBulletin® Version 3.8.1
Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
Maxbimmer Copyright 2001 - 2015