You can build up a nest egg of $1 million by saving only $300 a month over a working career of 40 years.
If you invest this money to earn an average return of 8% per annum, it will accumulate to $970,000 over 40 years.
If you earn 10% per annum, it will accumulate to $1,673,000 over 40 years.
By investing in a large, well diversified fund of equities, the average return over a long period has been around 8% to 10% per annum.
If you invest in a low cost fund, the charge could be as low as 0.5% per annum. This allows you to keep most of the return for yourself.
However, if you invest in a high cost fund that takes away 2% per annum, you may have 30% of the total money disappear.
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08/12 - 08/19
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- Switch to Global Equity?
- Collapse of the stockmarket
- Funding for research for young professionals.
- Advice for a young person starting a career
- Learn about life annuity
- Continue your existing critical illness policy
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- Asset backed securities
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- Investment Tips, August 2007
- Stock Trading
- Build up a nest egg of $1 million
- Promoting cooperative insurance in Singapore
- Fixed deposit rates
- Money market funds
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