Morgan Stanley: US Dollar Has No Credible Challengers; Reserve Currency
Status to Endure – Economics Bitcoin News
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The Chinese yuan, often considered a potential rival to the U.S. dollar,
currently falls short and is unlikely to dethrone the greenback. Read More
32 minutes ago
You may see your investment success at the end of the Rainbow. The end of Rainbow may be decades away and nearer your retirement; but you may not be aware now. The beauty as long-term successful retail investors.
ReplyDeleteCongrats !! Yes , the wonder of "compounding effect " and also buying solid and good fundamental company ..Cheers !! :D
ReplyDeleteHuge difference in buying at the right price and be lucky at right time
DeleteCW,
ReplyDeleteThis is a good example of financial alchemy to "verify' whether the reader's Mind easily fooled or not!
You har!
1. If you had re-invested your Keppel dividends, DEFINTELY the compounding returns will be greater than leaving in CPF OA ;)
Your past powerpoints said so!
2. For greater CLARITY, just compound the 31 Dec 01 dividends of 50 cents by 2.5% for 17 years; that's the true effect of
compounding ;)
3. The main growth and compounding from your example comes mainly from your Keppel dividends. Naughty, naughty!
This is like someone starting with $50K, never invest but put under the mattress. Every year continue to add $50K. Then
10 years later proundly declare his "investment" portfolio has grown and compounded to a 10 bagger!
How's that for the magic of "compounding"?
To answer your question, YES, a nominal return of 2.5% is LOW RETURN on capital :(
If we discount 2% for inflation, that REAL return is only 0.5%...
Have fun with FIRE goals based on 0.5% real returns :( (You think why GIC and Temasek measures REAL returns?)
That's why voluntary contribution to CPF is not investng.
Your dividends strategy in Keppel is!
And that's Earn More ;)
I am with Earn more camp. Corporations earn more will be winning stocks for investors
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