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What It’s Worth: Valuing Savings over Time

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Without a doubt, the amazing financial success stories get the headlines. You hear about company founders who make millions — sometimes billions — of dollars. Early investors in stocks such as Apple, Google, and Facebook have made gargantuan returns. Who wouldn’t want to make a return of 100 times, 200 times, or more on his investment?

However, expecting to make such gargantuan returns is a recipe for disappointment and problems. (In Chapter 10, I discuss how to use the best investments in stocks, real estate, and small business to earn generous long-term returns.) The vast, vast majority of folks I’ve worked with and seen accumulate long-term wealth have done well because they regularly save money and they invest in somewhat riskier assets that produce expected long-term returns well above the rate of inflation, as the following sections discuss.

Personal Finance in Your 20s & 30s For Dummies

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