Financial literacy is important especially after knowing where we are now! In this post I’ll let the numbers do the talking while you guys do the reading!
This post was sparked by a not so recent article stated that “A 20-year-old would need to save just $158 a month till he is 60 years old to have $1 million by then, assuming a compound annual rate of return of 10 per cent. On the other hand, a 40-year-old would need to set aside $1,317 a month to hit $1 million at age 60.”
In summary, the power of compounding requires you to invest a number that is not too conservative yet large in order to achieve your financial goals quicker and smarter (that includes starting at an earlier age).
What else could be giving me 10% compounding interest???????? – If Straits times index(STI) is only growing at a 7% annual rate… U.S investment has withholding tax of 30% for foreign investors….. I don’t know anything…… my insurance agent say unit trust/endowment plan berry good for the health…. Bank specialist introduce me fixed deposit… seems like it is a longer way to reaching the millionaire level… THERE’S SO MANY OPTIONS! 😦
-Every dollar spent not on your future is a dollar wasted-
p.s my hands were alittle itchy at the end