PRLog – Nov. 9, 2014 – Las Vegas, Nevada, November 05, 2014 — CashBackCat.com has completed a Special Report studying the cash back earned by shoppers. Instead of the cash back being spent, what happens if the cash back was saved and earned compounded interest?
How important is getting cash back on every purchase you make and keeping it, instead of spending it, sock it away for your child’s college education or for your retirement. Here are the facts, the numbers don’t lie.
These figures are derived from customer behavior and statistics from CashBackCat.com, a cash back and deals website.
If you are a periodic, moderate online shopper and you earn $ 100 a year in cash back rebates each year and you invest that $ 100 each year for the next 20 years you will have earned $ 5, 017.03 (assuming your investment was in the S&P 500 (Standard & Poors 500), the stock market benchmark, which earned 7.4% per year on average over the last 10 years.)
If you are a regular online shopper and you earn $ 500 a year in cash back rebates and you invested your $ 500 each year over the next 20 years you will have earned $ 25,085.16 (again, using the S&P500 average annual return rate of 7.4%)
If you are an active shopper, you would earn roughly $ 1,000 a year in cash back rebates. If you invested those each year for 20 years you will have earned $ 50,170.33, providing you received the rate of return of 7.4%.
Want to retire with a Free Gift of $ 370,878.61? All you have to do is start at 25 years old investing your $ 1,000 a year in cash back, each and every year, then at 70 years old you will have a windfall of almost $ 400,000. For some of you 70 sounds like a long way away, but you will see how fast the years go by after 40. The great thing is, is that anybody can do this, it’s free money being invested with the super power of compounding. You can use this money for your child’s college fund, put it in your IRA or Roth IRA, or simply into an investment account.
Investing in a 529 College-Savings Plan will allow your after-tax contribution to grow tax-free. Earnings can be withdrawn without tax liability as long as you are paying college expenses. To get more information on 529 Plans talk to your financial advisor. If you do not have a financial advisor, ask your friends or family members for a referral. Stick with a large reputable investment firm.
Investing your Cash Back in your IRA or Roth IRA is also a top solution. Investing in your IRA will allow your Cash Back investment to be a deduction and un-taxed and allowing the contribution to grow tax-free. You will have to pay taxes on your earnings when you begin withdrawing. A better alternative to your IRA is the Roth IRA. With the Roth IRA you use your post-tax Cash Back, yet your contribution grows tax-free and any and all withdrawals are tax-free. Ask your investment advisor for more details and also ask for the best “No-load” fund or ETF (Exchange Traded Fund) that invest in the S&P 500. This way you don’t have to be worrying about your investment. Just invest it and forget about it. Do not touch this money unless you have met your goals. If your goal is to not touch this money until you are 65 – stick with it. If your goal is to save up for that once in a lifetime vacation, well then take it and enjoy.
To continue to the full Report Click Here(http://blog.cashbackcat.com/ compounded-cash- back-can-put- …).
About John Freeland
John Freeland is the President and CEO of www.CashBackCat.com. His goal is to help online shoppers save money by providing amazing cash back rebates, coupons and exclusive deals on everyday items. John blogs at www.blog.CashBackCat.com and can also be reached at John@cashbackcat.com. John is also an investor and owner of various companies in a variety of industries ranging from real estate to ecommerce to investment banking.
About CashBackCat.com
CashBackCat.com is a Cash Back Rebate and Coupon website offering up to 50% Cash Back on over 1,600 partnered stores on its website. CashBackCat’ s goal is to save members as much as possible when shopping by using cash back rewards and coupons. Membership is Free and new members receive a $ 5 Welcome Bonus upon registering. To receive special discounts and cash back deals, sign up for the weekly newsletter, The Smart Shopping Newsletter at www.blog.CashBackCat.com.
Contact:
John Freeland, President and CEO
CashBackCat.com
Las Vegas, Nevada
Direct: (661) 388-1900
john@cashbackcat.com
http://www.cashbackcat.com
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