A financial advisor once told me if I invested $1000 per month for 30 years in a passive market index fund mix, I would have over a couple of Million dollars to retire at the end of that 30 years. I did the math of passive market index funds and found that its more like a $750,000 (using a 4.9% return) that I'll make after taxes and fees and using the actual market data for the past 30 years and other 30 year periods. As opposed to wishful thinking of 10-15% returns that he was using. But that's not it. Out of that $750,000 nearly $500,000 will be my own deposits. What's the point of all this? I can tell you that the returns are pointless. I am better off making more money and saving more money than this investing for riches (or retirement) thing.
In other words, you should have a lot money in order to justify investing. Inflation won't be much of a issue if all you have is a $1000. After 30 years, you probably will have nothing in real terms but that's just $1000 you've lost. You could've easily used that money to make yourself happier today as opposed to say buy into a dream of retirement with just investing alone.
Submitted March 22, 2017 at 06:26AM by throwawayMF1988 http://ift.tt/2mrWxP3
