Just for Thinking - Investing
Read? Long-term investment compounding return: Theory vs Real
Hear the truth from Uncle8888!
Your CPF OA will be heading towards the North and powered by the 8th Wonder of The World - Compound Interests!
The truth is here!
"In theory there is no difference between theory and practice. In practice there is." - Yogi Berra
In Practice, long-term investment return can end up like this ... and not always UP, UP, and AWAY like Superman!
May be some retail investors have super investing power !
Posts
The first thing retail investor should have is to aim for super long lasting investing power.
ReplyDeleteThings will or should even out in the long run.
Or maybe you are the 'HIT & RUN" type.
But really!
There is no exception for you or anybody.
CW and temperament,
ReplyDeleteThe irony in the CPF minimum sum debate:
1) If your real world investment returns are very much higher than CPF consistently over 10 years or more, you wouldn't need to touch this CPF minimum sum, would we?
2) Some are clamouring to let them invest 100% of their CPF OA without restrictions. It's quite evident these people started their investing journey AFTER 2009. They have never been through a plain vanilla -20% bear market yet...
But then, that's how we started too ;)
Fearless young at heats - thinking we are the Masters of the Universe when we made our first UNREALISED pot of gold. Then the idiot bear took it all away and then some.
Now we know the reality of taking profits is never wrong.
Let those starting their journeys debate on the theory of letting their profits run...
CPF and the annoying thing about compounding
ReplyDeleteCompounded interest seems like a pipe dream because its effects only show in the final years, says CAI HAOXIANG