Just a little misconception I have found. Hope to help some noobs like me...

Update: This post was created before the APR update in 2019. However, the main idea remains the same: if you have 2b cash, choose the best APR. If you don't have 2b cash yet, choose a short investment period so you can put your "new" money to work as soon as possible. This will help you grow your total bank investment the quickest.

Here is the original post:

I have been playing Torn for less than a year, but have accumulated enough money that I care about investing for some passive income. Upon investigating the best way to put my money to work for me, I believe I've found a misconception about investing in the Torn bank.

Many great guides and well-meaning friends say to invest your money in the bank and always choose the 2-month investment length because that has the best return, even when considering that your investment will be compounded more frequently in shorter term investments.

However, most of those posts are for people with a lot more money. They are maxing out their investments to squeeze every penny out of them. After all, might as well optimize your investment...

For noobs who are still growing their bank investment, I think there's a better option than the 2-month investment.

Here's why...

When I calculated out all the returns for one year on each investment, I got pretty much the same as everyone else. 2-months at a time is the most return. But if you are adding additional funds each time you re-invest, those additional funds change your long-term profit significantly. For example, if you choose to add 3% of your current investment each time when using the 2-week method, you would have to add 14.4% each time with the 2-month method to get the same results. Granted, you'd have more time to save up for that, but you would simply have to sit on your money until your next opportunity to re-invest.

Here's the math in my spreadsheet. Let me know if I messed anything up:

https://docs.google.com/spreadsheets/d/1RoaUnKCuDL_jbrjUwU7OAVO93mqdIXLrweP_DDeXtgo/edit?usp=sharing

The advantage of 2-week investments

For us investment builders, a better strategy may be to take the 2-week investment route. It's the next best profit after 2-months, but a much shorter time period. Why does that matter? Because you can continue adding your extra money to your investment more often. Don't wait 2 months to put your money to work for you. Actively grow your investment as often as you can. If you add even 1% every two weeks (a great goal!), you would be getting a compounding return on that money for an extra 4 weeks on average (times 25 investment periods).

Here is that same table in dollars. For example, if you have an investment of $500m, then your first additional investment for each type of investment to be equal would be the following (This is only your *first additional investment. Each time it would grow.)

So, if I'm going to invest an additional 5,000,000 on my 2-week investment, I'd have to invest 20,900,000 on my 2-month investment to end up about the same. At this point, it basically comes down to your money management style. I'm guessing for most growing noobs, it's better for us to put that money in the bank sooner rather than later.



***Again, this doesn't apply to players who have maxed out their investments because they can't add more. They are better off leveraging the extra profit from the 2-month investments since they have to take that money out each time anyway.



Anyway, just something I noticed. If we're squeezing the most out of our investments, this should help us builders grow a bit faster.




Hope this helps,

Hawk