Comparison Between 7% Compounded Interest and 12% Simple Interest
(From a talk by Alan Cowgil)
Do you know what $25,000 is worth in five years compounded at a 7% yield?
It’s worth $35,440.
But now let’s take that same $25,000 and invest it for the same five years at 12% simple interest instead of 7% compounded.
Now it’s grown to an amazing $40,000!
That’s a $4,560 Difference Simply by Upping the Yield from 7% to 12% ......
That’s An Extra $912.00/year
Increase Your Yield: Earn 12% Instead of the Average 4-7% Interest
Take a look at the following chart......
Return on Investment at 5 Years
7% 12%
Amount Compounded Simple Net Increase
$10,000 $14,176 $16,000 $1,824
$25,000 $35,440 $40,000 $4,560
$50,000 $70,881 $80,000 $9,119
$100,000 $141,762 $160,000 $18,238
These numbers are huge when you consider that in the above example the interest earned on the 12% investment could be re-invested to begin earning 12% too!!!!
If you expand it to a ten year term, your $25,000 would be worth $50,241 at 7%, but at 12%, it would be worth $55,000.
That’s $4,759 extra dollars.
Can you really afford not to control your own investments?
Does it make sense for a bank to run your investments for you? They would like for you to believe it does.
Well, there is an alternative for you to consider. That alternative is...... Private Mortgage Lending
You can loan money, secured by a mortgage or a deed that will not only give you the safety you want but will also give you the high yield we’ve discussed.
"Are your now ready to take action?"
So what’s it going to be? Are you going to continue to let other people control your money so you only get a return that barely keeps up with inflation? Or are you going to take control and make sure that when you get ready to retire, you can do what you want without worrying about money and if you are retired, squeeze every interest dollar out that you can.
Private lending is an incredible way to build wealth in a hurry that most people aren’t aware exists. You’re not one of those people who are uninformed anymore.
If you have more questions give me a call. Perhaps we can get together for lunch or just chat on the phone.
Jon
Email: INTL at securenym.net
(replace "at" with the @ symbol in your email) or telephone to me at: 334-300-2109
