I’m generally wary of writing about data.
Numbers are a different language from words, the former developed
primarily for quantifying, measuring and, in my case, stultifying.
Words on the other hand, being the general-purpose tool
evolved over lifetimes of use and abuse, have the unenviable task of deal with
the amorphous category of the immeasurable.
So while I can throw data on to a blank page, it generally
looks much prettier when vomited onto a chart.
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That's quite a lot of money. |
The chart shows the growth of 60k, with an annual 12k
investment, compounded at 8% per annum, will grow to roughly 2.2m in 30 years. The
key question in this case is to find an investment that can reasonably be
expected to compound reliably at 8% yearly for 30 years.
I’ve been told early-stage Ponzi schemes make excellent
investments, but they seem to be in short supply.
the growth rate is a bit too aggresive. i usually use a 6% just to be conservative
ReplyDeleteThat's a fair observation indeed. Should probably pull up some long term averages to get a better idea of what to expect.
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