Investing for beginners: fundamental investment principles

The Sanford Center offers a variety of resources for financial planning, such as workshops and one-on-one seminars. Western Herald File Photo The Sanford Center in the Haworth College of Business hosted a talk focused on teaching fundamental investment principles Nov. 4.Todd Mora, the speaker at the event and program manager of the Sanford Center for Financial Planning and Wellness, first explained the power of compounding and the importance of starting to invest early to maximize wealth accumulation. Mora talked about how using a $100 monthly contribution starting at age 22 results in $328,000 by age 65, whereas starting at age 42 yields only $68,000. “Okay, so this is $100 a month going until age 65,” Mora said.He continued, “What happens if you start at age 22? You end up with a nice $328,000.”Mora also talked about the rule of 72, a method to estimate how long it takes for money to double based on interest rates. Rule of 72 also measures rising inflation.

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