Rente Reinvestment Rekenmachine
This rekenmachine that will help you to see the long term effects of reinvesting your rente earnings rather than withdrawing them spil they are earned.
Note: The results of this rekenmachine are based on monthly compounding.
Understanding Compounding Rente
If you are teetering on the brink of whether or not to reinvest your already earned rente te a savings account, permit your decision to be made for you by examining the potential that your rente might build up if you were to place it back into an investment account and let it do its job for another period of time. There is no doubt that it is tempting to withdraw the balance of your rente spil soon spil it is earned and your savings account has come to a closing point that will permit you to build up access to the funds. After all, the reason that you invested your money te the very first place is so that you will have those toegevoegd monies to use spil a metselspecie cushion to the surplus of your finances. But, the savvy investor knows that the best way to use that gained rente – at least ter the long term – is to turn it around and roll it right back to where it came from. Reinvesting your rente will make serious gains for you ter the long run, if only you are patient and diligent enough to wait for it to come back to prize you.
Why Reinvestment Is the Best Option for Your Finances
Let the details of this theoretical screenplay tempt you away from instantly withdrawing your rente and sway you overheen to the side of reinvestment. A wise saver who determined to originally invest a sum of $Ten,000 at a nice 4% rente rate (compounded monthly) overheen three years would wind up with a monthly rente withdrawal potential of $33.33. While this might sound like a mere druppel te the bucket, just wait until you get a peek of the end result and make your judgment then.
The total of thesis rente withdrawals on the initial deposit after ten years equals out to a gepast $1,200. But, if our savvy investor were to reinvest all of their rente spil it is earned, the potential savings profit on this alone would be a whopping $11,272.72. And all this just for letting your money sit calmly te a separate account untouched by you. Spil you can see, rente reinvestment, if you can spare the money, has the potential to increase your original rente profits by a significant amount, sometimes even doubling or tripling your base earnings depending on how long you can afford to leave it alone.
What if I Need to Withdraw Early?
Of course, if a situation were to arise te which you needed to withdraw the money before the termination time for the investment wasgoed ultimately overheen, you would be able to under most standard investment contracts but only after paying fairly a hefty toverfee or penalty for early termination. This option should indeed only be considered te absolute emergency situations such spil unexpected medical bills, spil those who withdraw early risk losing almost all of their rente or sometimes even more than their rente earned. Ensure that you do not have to take this route by having a good emergency fund already te place te an account that is accessible to you.