Can you achieve your target CAGR (Compounded Annual Growth Rate) over a long period of time?
There are two investment periods.
Period 1: Start Working to Stop Working (retire from full time job/career)
- Start with low income
- Start a family
- Pay for insurance and installment
- Pay for education for children
- Pay for lifestyle
- Prepare for retirement
- Finally, left some for investment
Period 2: Post full time job / career
- 2nd investment period is as important as well as Period 1 because you will have another 20 to 40 years to earn money, by investment
Why investment is so important?
- Invesment provides an opportunity to live well without hard work;
- You need to ensure your money work harder than you so you can enjoy living;
What does a young person start invest?
Example -
- Alwin starts at age of 25 years old.
- Start with RM10,000 capital
- Start with saving of RM150 per month for next 20 years.
- Gets an CAGR of 10% for next 20 years.
- How much Alwin have in this investment fund?
