Taking a step further, if the last thirty five years are any indication, that future $21k would be worth less than today’s $10k.
Besides, to overcome inflation, you’d need to average double digit returns on your investment every year for half a lifetime.
Like you say, it’s a tough decision if there’s anything that can provide you value now. Not to argue against savings, but expecting it to grow exponentially with no effort is folly.
To overcome inflation you need returns higher than inflation. That’s it. Historically the markets outperform inflation. You’re saying things out of fear and not reality.
Funny how a mistake in a single sentence earns vitriol on the entire comment.
Despite what I’d mistakenly wrote, I meant that to overcome inflation and see a return of double to quadruple your investment - which is what the comment starting this thread suggests as the outcome - you’d have to beat the market by around 10%.
Regardless, my point was more to do with whether someone with only $50 to spare a month is truly in a position to invest in anything or whether they might be better off saving it for a rainy day or something like that.
If someone has a few dollars to spare come month’s end, but has found themselves skipping the odd meal, that money would probably be better spent on a small grocery trip than putting it into an ETF that’ll take years to turn a profit.
Taking a step further, if the last thirty five years are any indication, that future $21k would be worth less than today’s $10k.
Besides, to overcome inflation, you’d need to average double digit returns on your investment every year for half a lifetime.
Like you say, it’s a tough decision if there’s anything that can provide you value now. Not to argue against savings, but expecting it to grow exponentially with no effort is folly.
To overcome inflation you need returns higher than inflation. That’s it. Historically the markets outperform inflation. You’re saying things out of fear and not reality.
Funny how a mistake in a single sentence earns vitriol on the entire comment.
Despite what I’d mistakenly wrote, I meant that to overcome inflation and see a return of double to quadruple your investment - which is what the comment starting this thread suggests as the outcome - you’d have to beat the market by around 10%.
Regardless, my point was more to do with whether someone with only $50 to spare a month is truly in a position to invest in anything or whether they might be better off saving it for a rainy day or something like that.
If someone has a few dollars to spare come month’s end, but has found themselves skipping the odd meal, that money would probably be better spent on a small grocery trip than putting it into an ETF that’ll take years to turn a profit.