CAN POC FAIL?

None can give any guarantee to any investment. One can be guided great deal by previous experiences. One can not control terrorism, war, inflation, poor management in company and political level and many other factors.

All these deleterious factors usually becomes less important,

a) if one has long term investment horizon,

b) invested in well diversified blue chip high dividend paying stocks,

c) all dividends are reinvested to purchase more similar stocks and

d) further investment of more principal even small amount of money employing dollar cost averaging or similar methods.

e) One need to employ simple stock option strategies

i) to protect from downside slide of stock market e.g. buying put, like insurance policy,

ii) generating extra cash by selling covered call and

iii) buying stock at a lower price than the market price e.g. selling put.

There are many more option strategies. All option strategies have drawbacks. One can minimise the drawbacks and maximise the benefits. Net result is benefit.

These are my personal opinion and may not be applicable to other investors.

POC should not fail when applied as discussed above. The accumulation of wealth may be delayed if the rate of return is very low and/or the investment is small. Tables 69 to 72 show how the amount of the investment and the interest rate will affect the end values of the investment over a period of one hundred years.

Table 67 shows the value of an investment of $1.00 per week at four different interest rates (3%, 4%, 5%, 6%), compounded monthly. For each example, the starting balance is zero and the length of time is calculated in 5-year increments from 1 to 100 years.

Table 67

Year	End Value in $ of $1.00/week Investment at 3% Compounded Monthly	End Value in $ of $1.00/week Investment at 4% Compounded Monthly	End Value in $ of $1.00/week Investment at 5% Compounded Monthly	End Value in $ of $1.00/week Investment at 6% Compounded Monthly
1	52.77	53.03	53.30	53.56
5	281.59	288.92	296.51	304.36
10	608.92	642.06	677.56	715.60
15	989.43	1,073.68	1,167.24	1,271.27
20	1,431.75	1,601.22	1,796.54	2,022.07
25	1,943.81	2,243.29	2,601.75	3,032.05
30	2,541.18	3,030.78	3,640.03	4,401.21
35	3,235.59	3,993.29	4,974.34	6,251.20
40	4,042.82	5,169.71	6,689.06	8,750.87
45	4,981.18	6,607.60	8,892.66	12,128.38
50	6,071.98	8,365.05	11,724.52	16,692.01
55	7,339.99	10,513.09	15,363.76	22,858.31
60	8,813.99	13,138.53	20,040.56	31,190.11
65	0,527.44	16,347.47	26,050.75	42,447.90
70	2,519.26	20,269.59	33,774.48	57,659.22
75	4,825.10	25,043.13	43,657.30	78,121.36
80	17,515.09	30,897.85	56,400.76	105,860.58
85	20,642.07	38,053.77	72,777.45	143,341.33
90	24,277.05	46,800.08	93,823.22	193,984.68
95	28,502.55	57,490.24	120,869.26	262,413.09
100	33,414.50	70,556.27	155,626.29	354,872.37

Year	End Value in $ of $20.00/week Investment at 3% Compounded Monthly	End Value in $ of $20.00/week Investment at 4% Compounded Monthly	End Value in $ of $20.00/week Investment at 5% Compounded Monthly	End Value in $ of $20.00/week Investment at 6% Compounded Monthly
1	1,055.45	1,060.66	1,065.91	1,071.20
5	5,631.75	5,778.46	5,930.20	6,087.17
10	12,178.40	12,841.17	13,551.13	14,312.04
15	19,788.58	21,473.55	23,344.83	25,425.34
20	28,635.06	32,024.47	35,930.77	40,441.45
25	38,876.27	44,865.79	52,035.01	60,640.98
30	50,823.63	60,615.60	72,800.68	88,024.20
35	64,711.89	79,865.77	99,486.77	125,023.94
40	80,856.36	103,394.26	133,781.21	175,017.34
45	99,623.57	132,151.92	177,853.19	242,567.56
50	121,439.59	167,300.91	234,490.35	333,840.24
55	146,799.72	210,261.71	307,275.08	457,166.30
60	176,279.70	262,770.48	400,811.15	623,802.34
65	210,548.83	326,949.24	521,014.89	848,958.05
70	250,385.14	405,391.62	675,489.39	1,153,184.54
75	296,501.95	500,862.40	873,145.90	1,562,427.30
80	350,301.70	617,956.69	1,128,014.95	2,117,211.81
85	412,841.45	761,074.98	1,455,548.63	2,866,827.00
90	485,541.05	936,001.08	1,876,464.02	3,879,694.03
95	570,051.00	1,149,804.20	2,417,384.78	5,248,262.38
100	668,289.96	1,411,124.72	3,112,525.13	7,097,448.18

Year	End Value in $ of $50.00/week Investment at 3% Compounded Monthly	End Value in $ of $50.00/week Investment at 4% Compounded Monthly	End Value in $ of $50.00/week Investment at 5% Compounded Monthly	End Value in $ of $50.00/week Investment at 6% Compounded Monthly
1	2,638.62	2,651.66	2,664.78	2,677.99
5	14,079.37	14,446.14	14,825.50	15,217.91
10	30,445.99	32,102.91	33,877.82	35,780.10
15	49,471.44	53,683.87	58,362.08	63,563.36
20	71,587.65	80,061.16	89,826.94	101,103.62
25	97,190.67	112,164.48	130,087.52	151,602.45
30	127,059.07	151,538.99	182,001.71	220,060.51
35	161,779.73	199,664.42	248,716.92	312,559.85
40	202,140.90	258,485.65	334,453.03	437,543.36
45	249,058.92	330,379.79	444,632.99	606,418.90
50	303,598.97	418,252.29	586,225.87	834,600.61
55	366,999.28	525,654.30	768,187.69	1,142,915.77
60	440,699.24	656,926.23	1,002,027.87	1,559,505.86
65	526,372.08	817,373.13	1,302,537.21	2,122,395.15
70	625,962.83	1,013,479.07	1,688,723.47	2,882,961.39
75	741,254.87	1,252,156.04	2,182,864.72	3,906,068.29
80	875,754.25	1,544,891.77	2,820,037.36	5,293,029.58
85	1,032,103.62	1,902,687.51	3,638,871.55	7,167,067.58
90	1,213,852.60	2,340,002.77	4,691,160.01	9,699,235.19
95	1,425,127.49	2,874,510.60	6,043,461.90	13,120,656.11
100	1,670,724.88	3,527,811.91	7,781,312.75	17,743,620.65