Personal Finance | Different timelines require different strategies for investment
by David L. Bahnsen
Posted 2/09/08, 12:00 am
My last article laid out the importance of "compounding" in the process of accumulating money toward financial goals. (Because of compounding our money grows, then that amount grows, then that amount grows, and so forth, thereby enabling our money to grow faster through time than we would normally envision.) Time is a gift to those seeking to accumulate wealth, and the law of investment return is this: With less time, a higher return is needed; with more time, a lower return is needed.