Early Retirement & Financial Independence Community - View Single Post - What would you teach in Intro to Personal Finance?

FIRE'd@51 · 04-17-2007, 07:04 PM

I would start off with the time value of money and compound interest. The example about the person who saves $2000 per year in an IRA from 25 until 35 and never saves another dime versus the twin brother who saves $2000 every year from 35-65. Most people are amazed that the first person winds up with more money at age 65 (at a rate of 7%) than the second. This is a real grabber, IMO. It really emphasizes the importance of starting a savings program at a young age.

04-17-2007, 07:04 PM	#2
FIRE'd@51 Thinks s/he gets paid by the post Join Date: Aug 2006 Posts: 1,441	I would start off with the time value of money and compound interest. The example about the person who saves $2000 per year in an IRA from 25 until 35 and never saves another dime versus the twin brother who saves $2000 every year from 35-65. Most people are amazed that the first person winds up with more money at age 65 (at a rate of 7%) than the second. This is a real grabber, IMO. It really emphasizes the importance of starting a savings program at a young age. __________________ I'd rather be governed by the first one hundred names in the telephone book than the Harvard faculty - William F. Buckley