how to plan the future

[frenchbriefs]

Beefslice,

These days S$10,000 not much if compared to 20 years ago due to inflation.

Instead of wasting time thinking what to invest in you are better off:

1) Get a job, work and save for the first 10 years of your working life. Dump the savings into risk free Fixed Deposits. At the same time use a small portion of funds to experiment with stocks, bonds, Forex, etc. Once get the hang of it with comfortable steady returns then increase the stakes.

2) Invest the S$10,000 in yourself or your own business. Your returns will be much higher than any investment instruments if you make it.

this is not completely true,the most importing thing in investing is time and compound interest,time is of essence.......like albert einstein said,compound interest is one of the most powerful forces in the world,he who understands it ,earns it,he who doesnt pays it.

missing out on 10 years of compounding effect can be detrimental on ur growth.

remember nobody becomes a millionaire just from saving alone......if u save $2,000 a month or $24,000 a year,it will take u 40 years to become a millionaire.using a compound interest calculator,at 1 percent return a year,it will take u 34 years.at 2 percent return a year,it will take 30 years.at 4 percent it will take 24 years.at 8 percent returns it will take 18 years.at 9 percent 16 years and at 10 percent it will take 15 years to become a millionaire.....u want to start as young as possible and be as aggresive as possible,maximize ur returns.no matter how small the starting amount is,compound interest is how small things can become incredibly large things over time.

 

[Beefslice]

this is not completely true,the most importing thing in investing is time and compound interest,time is of essence.......like albert einstein said,compound interest is one of the most powerful forces in the world,he who understands it ,earns it,he who doesnt pays it.

missing out on 10 years of compounding effect can be detrimental on ur growth.

remember nobody becomes a millionaire just from saving alone......if u save $2,000 a month or $24,000 a year,it will take u 40 years to become a millionaire.using a compound interest calculator,at 1 percent return a year,it will take u 34 years.at 2 percent return a year,it will take 30 years.at 4 percent it will take 24 years.at 8 percent returns it will take 18 years.at 9 percent 16 years and at 10 percent it will take 15 years to become a millionaire.....u want to start as young as possible and be as aggresive as possible,maximize ur returns.no matter how small the starting amount is,compound interest is how small things can become incredibly large things over time.

Well said and quoted bro , thanks

 

[dork32]

this is not completely true,the most importing thing in investing is time and compound interest,time is of essence.......like albert einstein said,compound interest is one of the most powerful forces in the world,he who understands it ,earns it,he who doesnt pays it.

missing out on 10 years of compounding effect can be detrimental on ur growth.

remember nobody becomes a millionaire just from saving alone......if u save $2,000 a month or $24,000 a year,it will take u 40 years to become a millionaire.using a compound interest calculator,at 1 percent return a year,it will take u 34 years.at 2 percent return a year,it will take 30 years.at 4 percent it will take 24 years.at 8 percent returns it will take 18 years.at 9 percent 16 years and at 10 percent it will take 15 years to become a millionaire.....u want to start as young as possible and be as aggresive as possible,maximize ur returns.no matter how small the starting amount is,compound interest is how small things can become incredibly large things over time.

you missed one important point. power of compounding works only if the returns on investment is high. if your returns is 0.05% like our beloved posb bank gives, there is no difference when you really start.

the key to compounding is to hunt for higher returns. but then again, usually high returns equates with higher risk