Re:Don't Waste the Good Days
by jacquesm on Saturday January 01, 2022 @09:55AM
(#29758752)
Yes, I totally understood it, but thank you for saying it again.
Compound interest does not apply to the stock market, it applies to savings.
The only way stocks can compound is if you re-invest dividends, and that's not 'interest'.
Inflation eats at the value of the dollar, but not at the value of real estate, so that's one way to make this all work for you: buy a house when you're young at the current low interest rates so that you have a chance to pay it off, and better make sure that you do this in a place that isn't subject to boom/bust cycles.
Compound interest does not apply to the stock market, it applies to savings.
The only way stocks can compound is if you re-invest dividends, and that's not 'interest'.
Inflation eats at the value of the dollar, but not at the value of real estate, so that's one way to make this all work for you: buy a house when you're young at the current low interest rates so that you have a chance to pay it off, and better make sure that you do this in a place that isn't subject to boom/bust cycles.