Straipsnis Econsoc zurnalui (I dalis)

el_dorado | 2006-11-28 01:14 | perskaitė: 542
Straipsnis Econsoc zurnalui (I dalis) Ka gi, parasiau minetaji straipsni apie finansus Econsoc zurnalui. Reikalavimas buvo, kad jis butu suprantamas visiems (ir be ekonomikos ziniu), taciau kalba ei

Ka gi, parasiau minetaji straipsni apie finansus Econsoc zurnalui. Reikalavimas buvo, kad jis butu suprantamas visiems (ir be ekonomikos ziniu), taciau kalba eitu apie finansus. Ka gi, pabandziau suderinti siuos, is pirmo zvilgsnio, ganetinai nederancius dalykus. Sprendima, ar mano straipsni paims i zurnala, tureciau suzinoti jau greitai. (Atsiprasau tu, kurie nemoka anglu kalbos, taciau versti butu tas pats, kaip antra straipsni parasyti, o ir straipsnis jau kitaip atrodytu)

Everybody ought to be rich (By Mantas Skardzius)

“Everybody ought to be rich” - this was John Raskob’s (one of the most outstanding figures in Wall Street in notorious 1929) cry in late twenties. His plan was simple: to invest 15 bucks every month in common stocks and this should result in 80 000 dollars fortune in twenty years (whereas contributions would constitute miserable 3 600 dollars). Though this idea turned out to be rather far-fetched, more and more people recognize pluses of investing these days. It might be surprising how fairly little knowledge about it can result in pleasantly high returns. I will try to explain those merits of investing and how to achieve them.

First of all, I should explain the differences between speculation and investing. Usually, investing in stocks is unduly viewed as something like melting pot: stressful, extremely knowledge/time consuming and so on. Well, if films “Wall Street” or “Boiler room” are your sources of knowledge about investing, you are wrong. Investors don’t make millions of trades a day (unlike speculators), they don’t lose or earn millions of pounds in ten minutes. That sort of thrilling ride is suitable just for handful of devoted people. Whereas investing, in turn, is long-term sort of saving – alternative to bank account.

So, what actually you forgo by choosing to keep your money in a bank account rather than investing in stocks? Let’s compare those returns. A number of studies have found out that average return from stocks in the past century was around 6% over long-term risk-free bonds (for example, 20-year UK government bonds). Roughly, you can expect to get give or take about 5% per year if you keep your money in a bank account. .  What is the result? 20-year UK government annual bond yield is 4%, interest for your deposit in a bank account – 5% and annual return from stocks 10%. How do these returns affect your long-term savings’ performance? As you can see in this graph, if you invested 100£ in risk-free bonds/ bank deposit/ stocks, those return differences would result in significant variations in final level of savings in twenty years. To be concrete, investment in stocks would multiply your initial sum over six times. Bank deposit and government bonds would only double your money (though deposit’s performance would be slightly higher).

How to get those impressive returns? Basically, there are two ways: investing by using your own knowledge and your techniques or investing your savings in some sort of mutual fund (in this case, you will have to pay for someone to manage your funds). I will try to explain both ways.