Finance Q1 - Investing Basics The article starts off by...

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Investing Basics The article starts off by highly encouraging investing in the stock market no matter  what your financial goal maybe. According to Motley Fool an investor's best ally is  time, which young investors have plenty off.  To illustrate this, Motley Fool used an  example of an investor investing about $2000 at an 11% return which ends up  growing to about $53,416.19 in 30 years.  Due to the power of compounding  investing as early as possible is one of the most important steps an investor can  take towards securing a financially stable future. Some of the steps Motley  encourages taking in order to become a successful investor includes reducing all  high interest debts, saving at least 10% of your annual income, and planning for  retirement. Some of common mistakes made by investors include starting to invest  late, playing it safe (if young), and investing short term.   The second article/step about " investing concepts" starts off by emphasizing that  the value of a dollar today is more than the value of a dollar tomorrow or one year  from now due to the negative effects of inflation. In the article Motley Fool again  mentions the importance and power of compounding, patience, and time which are  essential towards accumulating wealth. Fool also suggests calculating your real  investing in the stock market, and determining your investment style. It also 
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This note was uploaded on 09/25/2008 for the course FIN 3403 taught by Professor Tapley during the Spring '06 term at University of Florida.

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Finance Q1 - Investing Basics The article starts off by...

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