Monday 6 September 2010

Preserving or building wealth? That is the difference! (2)

Read older post? Preserving or building wealth? That is the difference!

Does preserving wealth mean money doesn't grow anymore?

Obviously not! Money can still grow if the returns far exceeds inflation. This may be a good strategy if one doesn't have an aggressive investment goal to meet.

Read? The Best Secret in Investment and Trading – Compound Interest


How much investing capital or portfolio you have now and how far away from your goal posts will determine your rate of compounding required on your investment for you to reach there?
It is just simple Maths!

For example, from the current investing capital of $200K to $600K in 15 years for future kids university fund. It will require to compound the initial capital of $200K at 7.6% for 15 years probably over several bulls and bears market cycle.


1 comment:

  1. There are so many ways that you can do to make your money grow. You can seek jobs, put up a business, invest on stocks, etc. But whatever you want to do to make your finances grow, you must always do some counseling especially with some estate lawyers. Ottawa has law firms and offices which you can go to when you want some pieces of advice with regards to your money. Whether you want your wealth to be preserved or if you want it to increase.

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