I'm struggling to understand. Poor person has $100 dollars in their savings account. Rich person has $10M. Even if both achieve the same returns on their savings (be it through simply interest on a savings account, or through equities), let's say 10%. After just 1 year, the poor person would have just $110, while the rich person would have $11M. The rich person got richer faster in my book. Run the same simulation for 10 years and just imagine the result.
Point being, through the same exact investment vehicle and with the same exact rate, a rich person of course will built more wealth than a poor person. It's just the nature of a percentage-based growth.
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I'm struggling to understand. Poor person has $100 dollars in their savings account. Rich person has $10M. Even if both achieve the same returns on their savings (be it through simply interest on a savings account, or through equities), let's say 10%. After just 1 year, the poor person would have just $110, while the rich person would have $11M. The rich person got richer faster in my book. Run the same simulation for 10 years and just imagine the result.
Point being, through the same exact investment vehicle and with the same exact rate, a rich person of course will built more wealth than a poor person. It's just the nature of a percentage-based growth.