Will my $30K grow into a $1mil gold pot?
=== Part 1 ===
Last Friday, on the my MRT trip back home, I overheard an interesting conversation between 2 guys. One of the guy is in the early 30s? (lets call him Yuppie) and the other in late 50s? (Owen) . It went something like this:
Owen: You must buy a house lar! My mother recently sold her house for more than $125k! When she bought in the 60s, it was only $6k!
Yuppie: But now housing so expensive! That generation is over liao....
=== Part 2 ===
Wow! I thought to myself from $6k to $125k! As soon as Mr. Yuppie and Mr. John alighted, I whipped out my trusty scientific calculator and start punching in...  [/]  [=] [x^y] [(]  [/]  [)] [=] and guess what is the answer... 1.07497661853...
=== Part 3 ===
Hmmm...buying the property is great!... the compounded interest rate is 7.5 percent, the only problem is I do not have so much cash to put it down to purchase an investment-grade property now... of course unless I take a loan which is out of the question.... I don't like to be in debt...
I started to play with my trusty calculator, after a few tweaks, I *think* got this winning combination... with initial investment of $33.8k, at 12 percent compounded rate, in 30 years, the sum would be a tidy $1,0126,453. YEAH!!!
=== Part 4 ===
The only thing for me to do now, is to save my 33.8k, find an investment that will likely give compounded return at 12 percent consistently for the next 30 years... then I would have my pot of gold.... hmmm..... sounds quite mission impossible.... if you have any candidates in mind, do leave me a comment....
Warm regards,Fu Chin
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