Sunday, 20 September 2015

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%.



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. 

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

No comments:

Post a Comment