Page 63 - Charles Calhoun Book Rich As You Want To Be

there. For most investors individual stocks may be

too volatile and may carry more risk (of loss) than

is ideal. For most investors mutual funds will do
the job nicely and with less risk.

Each person decides for themselves how
much they will save and invest. Let’s take a look at

what happens when a person saves. And contrast

that with what happens if a person does not save.
And for the sake of this example, we’ll use a time

frame of forty years, which is the length of a normal
working life. We’ll use a 12 percent rate of return

for the illustration’s sake. Not all investors will

achieve a 12 percent rate of return, but it can be
done. The overall stock market has averaged nearly
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