Most people use investments as a way to increase
their wealth over a long horizon.
Not exact matches
Over a
long time
horizon, which we have, cost averaging and low fee index funds, the opportunity to grow
wealth is huge!
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.
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.
In ULIPs like Edelweiss Tokio Life —
Wealth Accumulation (Accelerated Cover), The returns are dependent on market volatility, but generally, they range between 6 - 8 %
over a
longer time
horizon.