Return to site

Make your money work hard for you!

Take calculated risk!

August 12, 2016

Rather let your money work harder for you!

From the chart, you might find an interesting mathematical relationship on why you should considered taking calculated risk in order to achieve your financial objective.

In this case, we've assumed young man who just started working at 25 and wanting to $500,000 by age 62.

Don't forget the power of time!

37 years of accumulation which can be considered long enough to have achieved the expected rate of return of 7.68%. The expected annual saving calculated based on Time Value of Money calculation (Free ebook on my course)  would be just $5,596!!! ( i.e. $466 monthly investing).

As compared with a return of 3.68%, you are required to save more!

How much more? $5,139 (91%) more on an annual basis. ($10,735 -$5,596)

If these options are not attainable, work towards doing a little bit of both;

saving more money and earning a higher rate of return. 

Having a good understanding on these relationship, you probably willing to take the calculated risk, so that you can make better use of that saving on other areas of financial concern.

Alternatively, to find out more, attend our "The Last 7000 Days" webinar.