If you
start to save early in your adult life, your savings will compound. The results of compounding interest,
even on modest-sized portfolios, can be striking.
A good rule of thumb to use in measuring the success of your investment plan,
whether you
buy and hold, invest for fixed returns, or aggressively trade, is this: one's
portfolio should
be sufficient to cover twenty years of future expense.
What we call the "Magic Twenty" is the right mix of assets,
interest, and ongoing savings to allow you to retire, relax, travel, and meet
other future financial goals.
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