The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

COMPOUND INTEREST:THE 8TH WONDER OF THE WORLD

The Entrepreneur's Forum for learning how to build wealth and financial freedom the Fastlane way!

Say "NO" to mediocre living rife with jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence. Join our forum with more than 70,000 entrepreneurs who are making it happen.
Join for FREE Today
Get the books
Remove ads? Join Fastlane INSIDERS
(Registration removes this block)

Kennypaul

Bronze Contributor
Read Fastlane!
Read Unscripted!
Speedway Pass
Mar 19, 2018
133
218
24
Nigeria
In chapter 14 of the Millionaire Fastlane ,MJ talked about how these "financial gurus" rephrase the titles of their books/seminars as "REBUILD YOUR WEALTH","START OVER","RECOMMIT"...blah blah blah

In my case,I've been urged by the host of this upcoming seminar titled "UNDERSTANDING THE 8TH WONDER CALLED COMPOUND INTEREST"(yeah right) to come for this "life changing" event.

Even after declining twice,I've been told that I might miss the "opportunity of a lifetime".

I would have jumped at this seminar if I hadn't read about the Millionaire Fastlane ,because of lack of lack of knowledge and "self-education",but I'm glad I read it.This seminar is tomorrow,but I'm sure as hell not going to it.
SIDE NOTE:According to TMF ,the rich use markets for income and wealth preservation-not to create it!...I never thought I would run into this "charade",but here I am.

Share your "financial guru" book/seminar post/pre experience.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

MJ DeMarco

I followed the science; all I found was money.
Staff member
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
Jul 23, 2007
34,944
137,983
Utah
Compound interest IS the 8th wonder of the world. It's so powerful when hooked up with a lot of time and money!

No what the 9th wonder of the world is?

Death-- and it's undisputed victories on planet earth.

10 billion wins. 0 losses.
 

jon.a

Legendary Contributor
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Speedway Pass
Sep 29, 2012
4,306
14,091
Near San Diego
Compound interest IS the 8th wonder of the world. It's so powerful when hooked up with a lot of time and money!

No what the 9th wonder of the world is?

Death-- and it's undisputed victories on planet earth.

10 billion wins. 0 losses.
It's more like 108 billion to zero. Of all mankind.
 

garyfritz

Silver Contributor
Read Fastlane!
Summit Attendee
Jul 16, 2011
693
790
Colorado
I've been urged by the host of this upcoming seminar titled "UNDERSTANDING THE 8TH WONDER CALLED COMPOUND INTEREST"(yeah right)
Compound interest IS amazingly powerful. But there's a catch: you have to have a POSITIVE rate of return. I have a brown thumb in the stock market, and over the last 38 years I have a NEGATIVE return.

It's a gift, what can I say. Everybody's gotta be good at something. I'm VERY good at sucking at the market. That's why all of my money is in real estate...
 

GoGetter24

Gold Contributor
Speedway Pass
Oct 8, 2017
566
1,166
Various
Compound interest is junk. Back in the days of no income tax and mild deflation, perhaps yes it was legitimate. After modern tax and then inflation, it's nonsense.

Compound business reinvestment, however, is not. That's how people like Bezos become the richest men. If your business has double digit marginal rates of return on investment, just retaining all the earnings is the best investment you can make.
 

WJK

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
Oct 9, 2017
2,546
5,848
Alaska
In chapter 14 of the Millionaire Fastlane ,MJ talked about how these "financial gurus" rephrase the titles of their books/seminars as "REBUILD YOUR WEALTH","START OVER","RECOMMIT"...blah blah blah

In my case,I've been urged by the host of this upcoming seminar titled "UNDERSTANDING THE 8TH WONDER CALLED COMPOUND INTEREST"(yeah right) to come for this "life changing" event.

Even after declining twice,I've been told that I might miss the "opportunity of a lifetime".

I would have jumped at this seminar if I hadn't read about the Millionaire Fastlane ,because of lack of lack of knowledge and "self-education",but I'm glad I read it.This seminar is tomorrow,but I'm sure as hell not going to it.
SIDE NOTE:According to TMF ,the rich use markets for income and wealth preservation-not to create it!...I never thought I would run into this "charade",but here I am.

Share your "financial guru" book/seminar post/pre experience.
Compound Interest is everything it's hyped to be. Making the seed money is only the first step. Then, if you manage it right, you can take advantage of the "Rule of 7" -- a compounding rule. That rule is that IF you manage and invest that money right, you should be able to double it every 7 years. And that is the power of Compound Interest in a nut shell.

The true charade is our consumer culture, which robs the earners of their money before they can go to the next step.

It's interesting that you have contempt for anything you would have learned at this event. I figure if I learn one good idea, it can be worth several times what I paid, and the time I spent sitting through the presentation. But, it's your education...
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

GoGetter24

Gold Contributor
Speedway Pass
Oct 8, 2017
566
1,166
Various
Compound Interest is everything it's hyped to be.
Let's assume you mean 'compounding return' (interest rates are basically 0), and pick a simple example: the average return on an S&P500 index fund for the last 10 years: ~7%.

Average inflation over that period, per year, was ~1.5%. If you believe that, after their weasely 'heuristics' etc. And lets take 30% as a crude average tax burden.

Inflation factors in after tax. Effective rate of return: 7*(1-0.3)-1.5 = 3.4%
Rule of 72 estimate on that for doubling the principal, if all of it is invested right at the beginning of the term, is about 21 years.

That's not bad if you're old money. But if you've got no principal, that's not a path to getting rich via the 'fastlane'. It's more something to keep in mind if you're of the 'retire at 60' mindset.
 

WJK

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
Oct 9, 2017
2,546
5,848
Alaska
Let's assume you mean 'compounding return' (interest rates are basically 0), and pick a simple example: the average return on an S&P500 index fund for the last 10 years: ~7%.

Average inflation over that period, per year, was ~1.5%. If you believe that, after their weasely 'heuristics' etc. And lets take 30% as a crude average tax burden.

Inflation factors in after tax. Effective rate of return: 7*(1-0.3)-1.5 = 3.4%
Rule of 72 estimate on that for doubling the principal, if all of it is invested right at the beginning of the term, is about 21 years.

That's not bad if you're old money. But if you've got no principal, that's not a path to getting rich via the 'fastlane'. It's more something to keep in mind if you're of the 'retire at 60' mindset.
Funny, my yields from my real estate holdings are a lot better than what you've quoted... but, I'm not into the stock market... I can't help to be of the "old school" since I'm considered to be "old" and supposed to be retired!
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Must Read Books...

Explore books recommended by MJ DeMarco and other members of the Fastlane entrepreneurial community.
Fastlane Bookstore
Top