Jeffrey B. Wenger is the director of the RAND Lowy Family Middle-Class Pathways Center. George Zuo, an applied microeconomist, works at RAND researching policies bridging economic, education, and health disparities in the U.S.
As economists, we’re frequently asked for stock tips and clues about how to get rich. Rarely do we have good answers, but here’s a tip that could pay off in spades in the long term. Investors know that a 7% rate of return doubles an investment every 10 years: $10,000 today could grow to $80,000 in 30 years. A 9% rate of return, however, could transform that same $10,000 into $160,000 over the same time span.
