The magic of long term investment

Key points:

1. Think long-term.

2. The magic of compound return

3. The long term investment in the share market :

• On average over the last 30 years, the annual return of ASX 200 is around 6 %. This is quoted from Macrobusiness. Other resources will give you a more generous quote around 9 - 10 % per year over the last 30 years. 
• Need to be able to withstand massive drawdowns. Maximum around 50%.
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4. If I start saving now, how much do I need to save to have 1 million in my bank account by the age of 60?

• So in my case, I will need to save around $ 1000 per month to reach that. 

5. A table which tells you approximately how long it takes for you to double your money:

6. Sorry, not a quick way of making money. Considering that we are still alive at the age of 60, it is not difficult to be a millionaire. The secret is to save early, invest into an exchange index fund, contribute monthly and it will grow for you. 

7. Here is a compound interest calculator. By adjusting your monthly deposit, you will find out approximately how long it takes for you to achieve your goal. 

compound interest calculator

8. Don't think 20 years is a long time, you will be there in no time. 

Introduction

Trying to invest regularly but know nothing about investment and tax. Needs to learn more and nothing is better than writing down and keeping a record of what I have learned.

I am grateful that I actually have enough money to invest. If you are in a financial hardship or difficulty, please don't forget the following:

1.  Have $ 2200 (asset not cash) place you on the top 50% of the wealthiest people on earth.

2. If you earn more than $ 50,000 annually, you are in the top 1% of the world's income earners.

3. If you have more than $ 500,000 in assets, you are part of the richest 1% of the world.

4. For those who live in Australia, the full time average weekly earnings for an adult is around $1484.50. So if you earn more than this per week, congratulations! You are earning above average.