If you regard "compound interest" to be just mathematics and theory and you do not like mathematics, you may be giving away a lot of money, say $200,000, without realizing it. So, please, for your own sake, pay attention to this article, and read it a few times, and talk to someone who can explain it to you. And take the right steps now to secure you own financial future!
Mr Tan,
ReplyDeleteNo doubt the returns from bluechips are higher - in general.
But even bluechip stocks are subject to volatility.
If a person had bought into bluechip SIA shares back in 2007, he'd paid for $20 a share.
SIA share has been barely above $10 for several months now.
Even if the company offered 6% dividend, the investor's capital would have been badly hit.
How the stock would perform over time is anybody's guess. The market today and the future will not necessarily follow the past.
There's a reason why some people opt not to have this kind of potential nightmare.
Yes, we know if we take time to decide each year what stock to buy, we'd probably be better off in the long run.
But we'd also be spending time and a good part of our lives wrecking our heads and on tenterhooks.
For some, there're better things to do with their time, even if they don't get a good return on their money.