The power of compound interest
The rule of 72 is that if you divide 72 by the yield, you can find out the number of years until the principal doubles.
For example, if you deposit 10 million yen in a fixed deposit with an annual interest rate of 6%, 72/6 = 12, so if you ignore taxes and fees, 10 million yen will be 20 million yen in 12 years. Thing.
It is not realistic to search for 6% annual deposits in Japan in this era, but if you open NISA with online securities and save investment trusts, you can utilize the power of compound interest (compound interest is). I think this is the best way to have time on your side.) I think it can be effectively used for asset formation for younger generations.
As an example, if you want to save 10 million yen in 10 years,
Compound interest management with an annual interest rate of 4%, monthly reserve amount of 66,740 yen
Compound interest management with an annual interest rate of 5%, monthly reserve amount of 63,099 yen
Compound interest management with an annual interest rate of 6%, monthly reserve amount of 59,645 yen
Compound interest management with an annual interest rate of 7%, monthly reserve amount of 56,369 yen
Compound interest management with an annual interest rate of 8%, monthly reserve amount of 53,263 yen
Compound interest management with an annual interest rate of 9%, monthly reserve amount of 50,321 yen
(Without considering taxes and fees).
(If you search for words such as “compound interest calculation”, you can find sites that automatically calculate.)
If you combine no-load and index-type investment trusts according to your purpose (it would be better if you could rebalance), if you make a monthly reserve, you will be able to use your child’s education funds and down payment for your own home in the future. I think it can be a great help in building assets for big events.
Many young people may feel unfair due to intergenerational disparities, but younger generations have the irreplaceable asset of being able to give time to their allies.
It’s too wasteful not to take advantage of this, and it’s probably only after we get older that we can truly understand its gratitude (^ _ ^;).
It’s a selfish imagination, but when I asked elderly wealthy people, “Do you want to return to your twenties even if you lose all your property?”, 90% or more answered “YES !!” I think it’s.
Although the story is off, it is not so difficult to accumulate investment trusts using NISA, so it is a big gospel to thoroughly investigate until you are satisfied with it and put it into practice. I think it will come back.
By Admin|2014-09-23|2014,News Release|