Tuesday, October 06, 2009

Turn Small Savings Into a Big Nest Egg or a big goose egg?

These are the sorts of money articles that just PISS ME OFF.

Take this paragraph from the aforementioned pissing off article:

"If you eliminate $100 of wasteful spending per month and instead channel that cash to an investment vehicle that yields an annual interest rate of 10%, that translates to more than $75,000 over 20 years, and more than $500,000 over the course of 40 years."

WHO is paying ten percent interest these days, especially on a lousy hundred dollars? Oooo that's right: noooooobody.

Hey, I have an even better idea. Put that $100 into "an investment vehicle" that yields an annual interest of 50% and you'll be able to retire rich five times quicker!

The really funny thing is that included with this article is a chart showing the interest rates of different "investment vehicles" and unless I'm blind, I'm not seeing any ten percenters. ONE percent is more the norm.


BRUNO said...

At one time in my life, I had a life-insurance policy, with a face-value of $50,000 upon a 25-year maturity date. But, due to "unforeseen-circumstances", I had to cancel it early. That was close to 30-years ago.

Providing I had kept it in-force: How much would my beneficiary actually have "benefitted", with todays' inflation? If I'd invested in a new home---it'd not come close to keeping it "secure", upon my demise.

Pisses ya' off just THINKIN' about it, let alone READIN' it, doesn't it???

*Goddess* said...

Probably pissed you off more just writing about it, huh? That's where we made one of our biggest mistakes. We didn't buy life insurance with a maturity date. We bought that damn term insurance which sounded great when we were in our 20's but now, we find out that when my husband turns 65, we'll have NOTHING. And right now we're paying close to 1k a year on the damn policy.