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A rate of return is an indication of the return made on an investment, over a period of time. It takes into account the effects of compounding and reinvestment. This metric is crucial for making smart investment decisions.
Investing
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Investing is not without its risks, but it is still a better option than simply saving money. It can allow your money to grow faster than inflation. This can help you achieve your goals earlier in life. It's also tax-efficient, as you pay taxes on your investments only when you withdraw them at retirement.
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The majority of investment strategies are designed for the long term Consider thinking about the time frame you're willing to invest over and stick to it. When it comes to investing it's important to keep in mind that the journey is often more important than the destination. It's a mistake trying to predict the market's highs and lows. If you make it wrong, you could lose money. It is important to pay off your debts prior to investing any money.
