Last month I wrote about long-term savings in tax deferred/retirement accounts, utilizing low cost/fee mutual funds. Recently, I was reviewing investment materials and the concept was crystallized even more.

Just think:

• If you invest $1,000 per month in a bond fund which returns 3% for the next 40 years, you'll have close to $1,000,000.
• If you invest the same $1,000 per month in a diversified mutual fund which historically has returned 8%, those investments will be worth over $3.5 million.
• If the same fund remained in place for 50 years, it would grow to about $8 million and...
• If the fund returned 10% rather than the 8% calculated, it would have a worth of $16 million.

Obviously, the power of time and compounding is compelling, but management and investment fees are also an important consideration... as a 1% fee would equal almost $2 million of the $8 million calculated return.  A simple and wise method may include the use of indexed mutual funds which are quite cost effective and may ultimately enhance your long-term return and "pot of gold."

So, get started today. Years go by in a flash and... it really is fun watching your investments grow!