Question:
❓If you invested $100,000 for 20 years, which of these would give you the biggest return?
A) 7% return every year for 20 years
B) 10% for the first 5 years, then 4% for 15 years
C) 4% for the first 15 years, then 10% for the final 5
D) They’d all end up with the same amount
Answer:
✅ A) 7% return every year for 20 years
Here’s why:
This surprises people—but consistent growth actually wins here.
Here’s the math:
- 7% consistently for 20 years = $386,968
- 10% early, then 4% = $290,044
- 4% early, then 10% = also $290,044
Even though both B and C average out to 7% over time, the returns don’t stack the same way.
That’s because compounding builds on the total amount—so earning more early and staying invested long-term gives you the biggest edge.
👉 Lesson: Don’t chase short bursts. Aim for steady growth that stays in play.
