Comments on: The Myth of Compounding Interest ….

By: DiscipleshipGuy

DiscipleshipGuy — Sun, 10 Jan 2010 06:13:07 +0000

I think your point about “How I enslaved my way to $7 million in just 40 years” is right on. I am all for being out of debt (credit cards, cars, school loans, and personal mortgage) but focusing all your time and efforts on saving money and being frugal is missing the point. I think David proved that.

Rather focusing on making money, and focusing on growing that money rather than just letting it sit there and grow, actively growing it.

By: Adrian

Adrian — Fri, 11 Dec 2009 01:42:55 +0000

@ David – I presume that the $100k is so that you own your house free ‘n clear and that you also have (or will have) plenty of cash in your retirement account to live a long and happy life without working?

By: Steve

Steve — Fri, 11 Dec 2009 01:23:16 +0000

David says:Don’t need 7 million. All I need is $100 grand to pay off my mortgage and I’m rich.

David, I don’t know how old you are, but , it seems to me, that if you have more then 10 years to live, your gonna want(and need) more than 100 grand to be feeling rich , or even to have much of a retirement to speak of.Unless,of course, you plan to spend your retirement sitting there watching reruns of Andy Griffith for the rest of your life.

By: David

David — Thu, 10 Dec 2009 19:49:49 +0000

Don’t need 7 million. All I need is $100 grand to pay off my mortgage and I’m rich.

By: Cars and radiation …- 7million7years

Cars and radiation …- 7million7years — Mon, 30 Nov 2009 07:43:08 +0000

[...] rates, I have calculated the Half-Life of each brand for you, simply by using the Rule of 72 [AJC: divide the depreciation rate into 72; the answer is the number of years it will take to halve the purchase price] [...]

By: Steve

Steve — Fri, 13 Nov 2009 03:56:33 +0000

Rick ,no one is saying to give anyone their dream. You’d be working even if you find a way to do it quicker. Ok, lets say you open a business, and spend 20 years building your number . If you could do the same in half the time, its not as if someone handed you this, you still worked for it,only you found a better/faster way to get to that number, so you have more time left to do what you enjoy most(be it fishing , or travel or whatever.

By: Rick Francis

Rick Francis — Thu, 12 Nov 2009 14:26:14 +0000

Adrian,

I think you made very good points here- with a small amount of time compounding isn’t the tool that will get you where you want to go.

>if this is your prime investing strategy you enslave yourself to a life of work and frugal living, running the risk that being able to truly live your Life’s Purpose will remain just a dream.

I wonder though- is a small time window a real necessity or just impatience? I don’t think the time working toward your life’s purpose is a waste. Nor should it be viewed as slavery. In fact, I suspect your life’s purpose would be less valuable to you if you were just given the money to accomplish it.

-Rick Francis

By: Adrian

Adrian — Thu, 12 Nov 2009 11:44:03 +0000

@ Modder – Point taken, although it’s probably more akin to a chain reaction – or hitting a j-curve or three [ http://7million7years.com/2009/06/11/its-all-about-the-curve-part-iii/ ] – than ‘simple’ compounding, that you (and I) are describing.

By: Steve

Steve — Thu, 12 Nov 2009 05:04:53 +0000

Neil,you had better get your Tax number from your state before thinking in terms of charging 18% interest huh? to avoid that pesky usury thing.

By: Chino Hills Homes

Chino Hills Homes — Thu, 12 Nov 2009 04:20:48 +0000

Compounding interest is a very big part of getting to the magic number needed to retire. But there are many ways to get there faster no doubt, starting a business,winning the lotto,getting an inheritance. All that can happen but compounding interest is a sure safe way to go in the long run.