Evening star., 1926-11-30
MEN AND MONEY
BY M. S. Rukeyse+.
(Copyright. 1926.)
(Copyright. 1926.D

Now that America has become since
the war a nation of investors, the
vital statistics Of those who are finan-
cially comfortable may perhaps tell q
more encouraging story than they
have in the past. Formerly nine out
of ten individuals lacked sufficient
competence at the age Of so to live on
the interest on their own Investments
According to the traditional view.
an individual spent his 20s getting
experience, and would not begin &C.
cumulating a real surplus until he
reached the age of 80. The newer no.
ton Is to start saving much earlier
in life, and thus take advantage or
the pull of compound interest over a
much longer period.
In discussing this subject, Wllllam
A. Schneider, counselor on personal
Western Electric Co.. said:
Must Save Money Rapidly.
"When a man reaches the age OF
40 he is not quite as old as he was on
his 21st birthday, but If he wants to
he we'll off at the age of 60 he must
save four times as much each month.
eff, for example, young man at
the age Of 81 should make up his
mind to have $40 900 when he reaches
only about $22 q month at per cent
compound interest. Whereas. II he
does not reach this determination un.
~ the age Of 40, then he must invest
about $87 a month"
This is q vivid way for stating a
fact which every one vaguely realizes.
The explanation Of the difference Is
that money doubles itself every IL
wears when invested at per cent,
with interest compounded seml-annu-
ally. NJ
Continuing this discussion. Mr.:
Schneider. in his new How to Get
Ahead Financially" 0Iarper's). adds:
Where Young People Fail.
"The thing that makes 1t hardest
for young people to save is that to-
DAVIS wants and needs seem so much
more real than those which will come
with middle and old age. When they
are tempted to be extravagant, they
find it hard to stop and think how
much more real and important the
JOY and satisfaction OF future nnan-
cial independence will be. Most young
people do not give more than a pass
ing thought to the terrible possibility
of being poor at old age; 1t seems too
far off, Full Of health and vigor,
they cannot help being optimistic and
self-confident. An old man is going
to be dependent upon you some day.
He is you. You had better provide
for him now while you are earning
more than you need to make you COM
Portable and happy"
The precise effect Of age on present
sacrifice in order to build up a COM
petence at 60 has been worked out by
those insurance companies which sell
income bonds, under which the in
sured pays in specific amounts each
year up to the age Of so, after which
the company pays to the insured a
guaranteed monthly income. Such
arrangements have disability provi
sions, which continue the arrange
ment II the insured is unable to keep
up policies.
The habit is growing Of providing
for the future Of children soon after
birth. Many fathers take out endow-
ment policies to assure a fund to
finance a college education for the
offspring. Some companies write in
surance policies on the lives Of young
children.
There is a penalty in postponing
your thrift program. The most ad-
yantageous time to start Is now.
tCopyright. 1929