Comment on Is it worth investing if I can only contribute $50 a month?
jagged_circle@feddit.nl 7 hours ago8%? Thats 0 gains with inflation, right?
Comment on Is it worth investing if I can only contribute $50 a month?
jagged_circle@feddit.nl 7 hours ago8%? Thats 0 gains with inflation, right?
Preflight_Tomato@lemm.ee 5 hours ago
7-8% is the standard value used after taking inflation into account. It’s really 10%, but inflation eats 3% yearly, on average. Using the metric this way also conveniently means that the value you calculate for the end of compounding (in 35 years) is interpretable in todays dollars.
So 7% interest on 50$ monthly for 35 years means total principal of 21k$ and total of 83k$ (todays value).
See www.investor.gov/…/compound-interest-calculator