Sunday 2 November 2014

Time Factor in Saving vs. Investing???



Save young?


 The power of compound interests is your friend!


 100% true!



 Invest young?


Investing is NOT the same as saving.

 CAGR in investing is NEVER THE SAME as compound interests!
CAGR may be negative. 

Once we locked in large negative return, we may have to struggle for a long time just to breakeven.

"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." ~ George Soros


 We know the true story of one man in his 40s came in the second half of 2009 with his large War Chest. The rest is History.

He has more than enough in his own terms to sing song everyday.





 Then we read another true story in Sunday Times about one young man in late 20s who came in the early 2009 and made large capital gains. 

He later swapped his large capital gains for passive income strategy in the later years and targeting for $10K passive income per month.

So what is The Moral of Story?







"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." ~ George Soros




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7 comments:

  1. B2 November 2014 at 10:50:00 GMT+8

    Save young is true. Invest young also true but make sure you know what you are doing.

    ReplyDelete
    Replies
    1. Createwealth88882 November 2014 at 13:30:00 GMT+8

      Young at 2008 - 2009 and young at 2006 - 2007.

      Same youth.

      Outcome in learning experience in investing can be vastly different.


      Delete
  2. Rolf Suey2 November 2014 at 11:18:00 GMT+8

    Uncle CW,

    Both save and invest young is true. But "balance" is the key! You still go to school and finish your education, and you still need to work to increase income without which, you do not have enough to save and invest.

    Life is more than savings and invest only! Again "Balance" !!!

    Rolf

    ReplyDelete
    Replies
    1. Createwealth88882 November 2014 at 13:32:00 GMT+8

      You also wear New Balance shoes?


      When not sure, we should take middle path or balance (50 - 50 or 40 - 60). Play safe. Wrong also not too painful.

      Delete
    2. RayNg2 November 2014 at 15:34:00 GMT+8

      This comment has been removed by the author.

      Delete
    3. RayNg2 November 2014 at 15:36:00 GMT+8

      Wear Nike shoe when the market crash.

      Just do it!

      Delete
  3. Rolf Suey2 November 2014 at 16:02:00 GMT+8

    Haha,
    I wear what our SAF provides. I wear new balance during NSF time. Now it is asics...heard later in the year it will change to Adidas. I just adapt and balance.

    Also balance is related to Age and Experience. Older and wiser normally has more balance. Young or less experience has more energy and drive in relative more uni-direction. Just a thought! - There may be exceptions of course.

    ReplyDelete