June 2021
Beginner
304 pages
8h 8m
English
Content preview from Investing in Your 20s & 30s For Dummies, 3rd Edition
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Chapter 3
Setting Your Return Expectations
IN THIS CHAPTER
Looking at expected returns from common investments
Understanding the power of how returns compound over time
We invest to earn returns. In my experience as a former financial advisor and as a writer interacting with many folks, I still find it noteworthy how many people have unrealistic and inaccurate return expectations for particular investments.
Where do these silly numbers come from? There are numerous sources, most of which have a vested interest in convincing you that you can earn really high returns if you simply buy what they’re selling. Examples include newsletter publishers and writers, some financial advisors, and various financial publishing outlets.
Interestingly, and not surprisingly, less experienced groups of investors (for example, young investors just beginning to invest) tend to have higher and more unrealistic return expectations. In this chapter, I reveal and discuss the actual returns you can reasonably expect from common investments. I also illustrate the power of compounding those returns over the years and decades ahead, and I show you why you won’t need superhuman returns to accomplish your personal and financial goals.
Estimating Your Investments’ Returns
When examining expected investment ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.