SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 375.93-1.8%Nov 14 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TobagoJack who wrote (59636)1/2/2010 7:56:33 PM
From: KyrosL1 Recommendation  Read Replies (3) of 217764
 
TJ, as an engineer you must know the power of compounding.

1.04^50 = 7.10

Amazing what a 4% dividend does over 5 decades: It multiplies the final stock index price by a factor of 7.

You, being a Hong Kong resident, don't have a dividend tax, so you don't need to worry about that. Even we in the US have a Roth IRA where everything from trading profits to dividends are tax free. The dividend tax here outside an IRA is 15%. That reduces the 4% to 3.4%. So over 5 decades you need to multiply the final index price by:

1.034^50 = 5.3

Conclusion: investing in an average US stock index beats the pants off investing in gold over the long term, regardless of when you start counting.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News