Understanding Investment and Compound Interest

What is the average annual return of the S&P 500 since its inception?

• 8-10%

• 15-20%

• 5-7%

• 10-12%

After 40 years, how much would an initial investment of $10,000 grow at a 10% annual return?

• $452,000

• $250,000

• $1,000,000

• $600,000

What is the effect of compound interest over time?

• Immediate high returns

• Stable investment with no growth

• Decrease in the value of money

• Significant growth of initial investment

Who had a higher investment return at age 67?

• Neither invested

• Ben

• Joey

• Both had the same

How much did Ben's investment grow by age 67?

• $3 million

• $500,000

• $1.2 million

• $2.1 million

What was the main difference in the investment outcomes between Ben and Joey?

• Financial advice received

• Type of stocks chosen

• Amount invested per year

• Starting age

What is the key to building wealth according to the video?

• Inheriting wealth

• Having a high-paying job

• Winning the lottery

• Investing early and consistently

What age did the video suggest is still good to start investing?

• 50 years old

• After retirement

• Only in your 20s

• At birth

What should you do before starting to invest according to the video?

• Buy a new car

• Pay off consumer debt and have an emergency fund

• Travel the world

• Invest all your savings in stocks

What is the primary reason for delaying investment according to the video?

• Lack of available investment options

• Advice from financial advisors to wait

• Waiting for the stock market to crash

• Paying off debt and building an emergency fund