What to do with ur long term savings?

[thepolecat]

my mattress is the best place for me! i dont believe in the banking and credit institutions

[SampaGuy]

my mattress is the best place for me! i dont believe in the banking and credit institutions

u should educate yourself because thats a dumb thing to say. in simple terms, banking institutions give u free money.

lets say me, you, and tony (the guy that posted above) have $10,000.

-you put it under your mattress, never spend a penny of it and keep it there for 10 years. after 10 years, how much will u have? the same $10,000. ( actually u will have less than $10,000 because money depreciates because of inflation). after 10 more years, your money will have depreciated even more.

-i put my $10,000 in my simple 4.5% apy ING account. 10 years later, my money will have grown to $15,529.69 without me adding a single penny to the account. add another 10 years and ill have $24,117.14 (i would have more than double my initial amount)

-tony puts his $10,000 in his 11% apy mutual funds. after 10 years, he will have $28,394.21 and after 10 more years he will have $80,623.12

[tony]

-tony puts his $10,000 in his 11% apy mutual funds. after 10 years, he will have $28,394.21 and after 10 more years he will have $80,623.12

Another thing to remember is if this is long term savings DO NOT TOUCH IT! Learn from my mistake, I took out about $4500 some years ago thinking it wouldn't make a big difference but with the nature of compound interest that $4500 set me back at least $7,000 today. When I'm finally ready to use my savings that $4500 would be in the mid to high 5 figure range.