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資産 Interest is a mechanism that raises assets by receiving profit and returning the profit again.
At first, the change looks small. However, the longer the number of years, the more the previous profits will begin to work.
In order to use the power of double-, it is important to plan money that can be kept long, lower cost, and not collapsed on the way.
The shorter the results, the harder the compounding will work.
What is compound interest?
The profit is a mechanism to reinvest the profit gained by the operation and make further profit to the profit.
Single interest is only profitable to the original. Both the original and past profits generate the following benefits:
Future assets = Ex-book × (1 + Yield) ^Number of years| 考え方 | 内容 |
|---|---|
| 単利 | Profits only to the original |
| Tag | Profits to the total of the original and profit |
If you see only this expression, it feels slightly hard.
In actual sense, it is easy to understand that it is possible to think that "the more you leave in the asset, the more you can participate in the next growth" without using profit.
At first look slowly
A common misconception in bilinguality is to think that it will grow quickly.
In fact, a few years have just started to look small. Because the original book is still small, the profit is also small.
However, the higher the number of years, the higher the profits in the past, the more effective the overall asset growth.
| Period | View |
|---|---|
| Year | You can see the taste |
| 10 years ago | The difference between the original and profit begins |
| Over 20 years | The difference of co ity increases |
走el is not a short run.
It is a mechanism that takes time and effort.
Reinvestment Points
You need to reinvest the profit to work on the profit.
If you receive dividends and dividends and use them, you will be removed from the operation. Of course, there is also a choice for living expenses and fun. However, if you prioritize asset formation, reinvestment is more effective.
| How to use profit | Effects on compound interest |
|---|---|
| Use | No participation in asset growth |
| Cash | Risk is lower, but growth is lower |
| Reinvestment | Become a principal that generates the following profit |
In the investment trust, there are products that reinvest internally without金bution.
In ETF and individual shares, dividends must be reinvested on their own. This is a change in usability depending on the product.
Replenishing compound interest
There are things that will be useful when growing compound interest.
Typically, it is expensive, frequent buying and selling, intermittent cancellation, un積onable立umulation.
| 邪魔するもの | Reason |
|---|---|
| High fee | Cutting annual growth |
| Fre t sales | Taxes and fees |
| Break down | Time effect cut |
| Un onable | I can't keep my hometown |
Do not grow in good condition.
It grows with a system that is easy to continue.
Reinvestment of profit and time.
At first, it is a local taste. It is not meaningless because it doesn't get big right away.
Continue with a small amount. Reduce costs Leave profit as much as possible. Protecting these three can make it easy to use.