Comments on: How to Become a Millionaire Step Four – Invest http://cashmoneylife.com/2008/07/25/how-to-become-a-millionaire-invest/ Money Management, Small Business, Career Fri, 19 Mar 2010 22:04:10 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Alisa http://cashmoneylife.com/2008/07/25/how-to-become-a-millionaire-invest/comment-page-1/#comment-11097 Alisa Thu, 14 Aug 2008 11:02:12 +0000 http://cashmoneylife.com/?p=825#comment-11097 Great posts. I recently started My Stock Market Journey and I am learnng how important it is took include dividend paying stocks as they really hope to boost your earnings. And I honestly did not think of the compounding effect until I read this post. Thanks for sharing. Great posts.

I recently started My Stock Market Journey and I am learnng how important it is took include dividend paying stocks as they really hope to boost your earnings. And I honestly did not think of the compounding effect until I read this post.

Thanks for sharing.

]]> By: Dividend Growth Investor http://cashmoneylife.com/2008/07/25/how-to-become-a-millionaire-invest/comment-page-1/#comment-10172 Dividend Growth Investor Tue, 29 Jul 2008 14:10:07 +0000 http://cashmoneylife.com/?p=825#comment-10172 Compounding interest is fascinating. But it also applies to stocks, not just for deposits. In fact, if you have picked some great dividend paying stocks that have increased their dividend payments over time you would have achieved double the compounding effect. If you had invested money into a hypothetical Dow Jones 30 ETF on 12/31/1919 you'd have received $5.80 in dividends in 1920. The index closed on 12/31/1919 at 107.23 accordin to DJ - http://www.djindexes.com/mdsidx/index.cfm?event=indexHistory. Fast forward 80 years and assuming that your ancestors and their heirs up untill you spent all the dividends every year. And your investment is worth a little over $11000, but brings in over $250/year. http://www.valueline.com/pdf/valueline_2006.pdf Compounding interest is fascinating. But it also applies to stocks, not just for deposits. In fact, if you have picked some great dividend paying stocks that have increased their dividend payments over time you would have achieved double the compounding effect.
If you had invested money into a hypothetical Dow Jones 30 ETF on 12/31/1919 you’d have received $5.80 in dividends in 1920. The index closed on 12/31/1919 at 107.23 accordin to DJ -
http://www.djindexes.com/mdsidx/index.cfm?event=indexHistory.
Fast forward 80 years and assuming that your ancestors and their heirs up untill you spent all the dividends every year. And your investment is worth a little over $11000, but brings in over $250/year.
http://www.valueline.com/pdf/valueline_2006.pdf

]]> By: Laura http://cashmoneylife.com/2008/07/25/how-to-become-a-millionaire-invest/comment-page-1/#comment-10120 Laura Sat, 26 Jul 2008 20:32:45 +0000 http://cashmoneylife.com/?p=825#comment-10120 Great tips! When I started investing, I only put in $25/month. As learned more about compound interest, I increased my deposits when I got raises. Great tips! When I started investing, I only put in $25/month. As learned more about compound interest, I increased my deposits when I got raises.

]]> By: Benjamin http://cashmoneylife.com/2008/07/25/how-to-become-a-millionaire-invest/comment-page-1/#comment-10105 Benjamin Sat, 26 Jul 2008 01:59:26 +0000 http://cashmoneylife.com/?p=825#comment-10105 The power of compounding interest is absolutely amazing! I remember running "scenarios" when I was in college about hypothetical returns on only marginal investments. It doesn't take too much time to accumulate $1,000,000! The power of compounding interest is absolutely amazing!

I remember running “scenarios” when I was in college about hypothetical returns on only marginal investments. It doesn’t take too much time to accumulate $1,000,000!

]]> By: Dividend Growth Investor http://cashmoneylife.com/2008/07/25/how-to-become-a-millionaire-invest/comment-page-1/#comment-10093 Dividend Growth Investor Fri, 25 Jul 2008 18:10:06 +0000 http://cashmoneylife.com/?p=825#comment-10093 I like this part. Maybe because I focus so much on this step I am decades from becoming a millionaire for the first time :-( As my algebra teacher told me once " I'm now working on my second million. I failed at making the first one, so I decided to start working on the second one " I like this part. Maybe because I focus so much on this step I am decades from becoming a millionaire for the first time :-(
As my algebra teacher told me once ” I’m now working on my second million. I failed at making the first one, so I decided to start working on the second one “

]]>