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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (59636)	1/2/2010 7:56:33 PM
From: KyrosL	1 Recommendation Read Replies (3) \| Respond to of 217743

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.