Truth 35. Annuities for children
"Children today are tyrants. They contradict their parents, gobble their food and tyrannize their teachers."
—Socrates
Despite Socrates' lament shared by many parents today, we still try our best to plan for our children's future. Although we more often think of annuities as being an investment choice of older people, children may, in limited circumstances, actually be better candidates for investing in annuities.
Compound interest
The magic of compound interest can be explained in any number of cryptic-looking mathematical formulas, but the concept itself is fairly simple. When you compound interest on any investment, the interest that you receive is added to the original principal invested, so that from the ...
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