How to become a multimillionaire to pensions, postponing for 3000 rubles a year
Get Rich / / December 20, 2019
Philip Astrakhantsev
A private investor. The founder of the Academy "GlavInvest".
The power of compound interest
IN previous article we have seen how the natural way to make millions in the stock market. It's all about a secret compound interest.
As I explained, the idea is that you make money with the money that has already been earned. And the more money you earn, the more money they will bring you. This idea of the real power lies. If you put 100 thousand rubles at the age of 30 years, at the time of retirement you may be 15 million.
While taking into account inflation, this may not be so much. So today I will reveal to you the real secret of how to create wealth with the help of compound interest.
This secret is almost as simple as the principle of compound interest. He did not refer to techniques full of drive and adrenaline, but it can create a significant capital to investors who follow him. I saw it on a familiar example of a family from the United States, where both father and daughter used it to create a secured pension.
The father was a prominent doctor, is very attentive to their patients. But this terrible investor. Often he succumbed to greed and fear, so characteristic of the stock market. Sometimes I liked to buy on the advice of friends in conversations at the bar. But, fortunately, for that he was a special trading account "for the games," and he was not very worried about the loss. With his retirement, he did score a fundamentally different way and used a strategy that anyone can make rich.
His daughter also adhered to this strategy. Today she lives in a house with views of the mountains with her husband and two sons. They have enough money for it, to enjoy life and deal with their hobbies. She is very grateful to my father for what he told her about this secret at an early age.
You can see how this strategy on the chart:
Green bars show the result of the approach of the previous article. He really works: 100 thousand turned into 10-15 million. But look at the other charts.
Yellow bars illustrate the approach of the father in our example. He started investing 30 years and every year thereafter postponed it a little money. Of course, I do not have exact numbers, but for example (adapted to rubles), I suggested that he could initially make the same 100 thousand rubles, and then fill up their investments by 50 thousand rubles a year.
In the graph you can see that, while continuing to act in this way, by age 50 he had accumulated about 10 million. It is almost eight years faster than in our first example.
For 55 years he was already 20 million, and by 58 years - about 39 million.
Just think about it. You start at age 30 and receive an annual yield of 18% (the average return of the Russian MICEX index over the past 16 years) by investing in a basket of shares of the largest Russian companies. You start with 100 thousand, and each year make the whole 50 thousand additionally. And for retirement you have almost 40 million.
Let's now look at the blue bars that show the results of her daughter. Its main advantage is that these principles are explained to her parents as a child and at the age of 10 years began to form her personal savings. For example, I also adapts all the figures to the reality of the ruble. First payment of 20 thousand rubles. Then she, too, had participated in the process and with the help of parents postponed for 3000 rubles a year.
When the daughter grew up, she did not have a high paying job, and she continued to delay and only 3 thousand a year, but do it regularly.
In the graph we can see what happened to her savings, which began to emerge from childhood, but quite small amounts. For 44 years she has accumulated 10 million.
At this point all on its investment account was invested 102 thousand rubles, and earned - 9.9 million. If it can wait another five years, for 49 years she is already 20 million.
This is an impressive result from investments 117 000: The total yield is about 17,000%.
Further figures are altogether improbable. For 55 years (women's retirement age in Russia) she will have more than 70 million rubles, or more than $ 1 million. Even with the banking profitability of 8% per annum, this sum will bring her more than 450 thousand rubles per month interest. Do you think that a decent pension?
conclusions
What do these stories tell us? Story of a father shows that you do not need a long period of 50 years, to get the results from the use of compound interest. But the story of the daughter proves that the more time you have, the more incredible results it can give.
I invite you to share this secret with your family and friends. If you have children or grandchildren, then it is important to know about savings and investing. A good way to tell about it - is the story of the daughter of the family today, which could become a multimillionaire, putting a very modest amount every year from an early age.