AMA The Fifth Person
Asked by Anonymous
Asked on 16 Feb 2019
Compound Interest: A Ridiculously Easy Way To Get Rich https://blog.seedly.sg/easy-way-get-rich-compound-interest/
The article assumes appreciation of 5% which can be achievable through stocks in most markets up to the near future. It is rather uncertain how growth rates will be 10-15 years down the road though.
Based on the figure in the article, it seem like the annual return is about 5%. Investing in stocks can achieve the follwing figure but a more safer way, I would suggest is investing in index ETF. In generally most index should be able to achieve the given percentage except for Japan market index.
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20 Feb 2019
21 Feb 2019
Stocks, ETFs, Robo advisors and so on. There are a lot that can do that but you have to comfortable with dealing volatility and dont panic sell when prices drop. Investment can go down not only go up.
You don't need to buy into an investment plan to get the same types of returns. This can be achieved using a basket of s-reits as well. Good ones with strong sponsors are yielding at about 5% onwards, which, when reinvested can potentially give the amount you mentioned. It should not be something you buy into and forget over time though, as you will still need to monitor the portfolio to determine if the fundamentals are still present. If not you need to consider changing to a different counter to invest into.
Frankly mutual funds as mentioned in article may not be the best option. Mutual funds carry fees, which will eat a big chunk of the profits, and there's no guarantee the fund will deliver at 5% or more over a period of 5 years, not to mention 40 years. Learn how to invest on your own. You'll potentially make better returns and it's a skill set you can use for life.