Compound interest investment

Hello Seed-lians,

All along I've been trying to figure out if there's a fixed method or place to put money at which will compound in the most optimal rate, but it seems like there's no fixed answer to that - example, this Seedly article (https://blog.seedly.sg/easy-way-get-rich-compou...), at the end of article, it just gave links to Savings Plans / Online Brokerages.

Yes, I admit I may not be the best at researching, hence, will any kind souls suggest which methods are available for compound interest which I can look more into?

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1M45

Edited 04 Apr 2023

Expected returns is always based on historical data.
And depend on the period you extract the data the expected returns will be difference.
But widely accepted for S&P500 expected returns is 8 to 10% p.a.
However, past performance do not guarantee future results.

In reality, market dont go up in a straight line. Market may have prolong bear market or going side way.
Your investment should be:

(1) diversified

(2) have a mixture of dividend stocks/ETF (for bear market) and growth stocks/ETF (for bull market).

(3) and you should consistently pour $$$ into your investment.

So in any market condition, no matter at what rate your investment compound at, your retirement will still be on track.

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Chris

Edited 01 Apr 2023

“Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things.” - Charlie Munger

Understanding a lot of things can also mean the ability to align all stars e.g. what instruments, when to execute, how much to deploy; hoping for compound interest to take place. Otherwise, computing the yield required to achieve the preferred amount at the desired retirement age is simply an illusory paper exercise.

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Choon Yuan Chan

31 Mar 2023

If you want higher annual interest/dividends, you have to assume more risk. If you are right, the sp...

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