Sentences with phrase «compounding over a long time horizon»

Fees are extremely important to take into consideration when evaluating options for retirement, because the effects are compounded over a long time horizon, and high fees and costs can cause serious harm to your retirement savings.

This can make an even bigger difference if the extra return is compounded over a longer time horizon until retirement.

The whole point of tax - free compounding over a long time horizon is that the young can truly generate huge sums if they max out contributions from day one and also invest wisely in diversified equity - heavy portfolios.

Since retirement savings compound over long time horizons, any inefficiency or trustee bias can significantly affect the employees» wealth at retirement and have larger societal consequences as well.

Not exact matches

Because the time horizon is so long for many retirement portfolios, the bite that these fees can take really compounds over the years.

So both the rate of return, and the length of compounding have enormous leverage in creating future wealth.Simply stated, if your goal is to accumulate a significant amount of wealth during your lifetime, you must first save something, and then exercise some amount of control over one of two factors: your long - term rate of return, or the time horizon T over which you compound your wealth.

It's understanding productive assets and their likely intrinsic value; how they may or may not compound in intrinsic worth over a long time horizon.

Meanwhile, the compound average annual return of the S&P 500 is more like 10 percent over a long - time horizon.