All the investments are just based on stock market, why can't we get something other than stock market.As we have seen many times people turning from rich to rags coz of share market.
just let us know other ways to help our money grow faster and safer.
Excellent articles for readers on where to invest and why you should start saving early........ what about something for late starters (40yrs)- ....... Mohan
firstly, the rate of interest assumed to be the constant over the next almost 30 years is the wierdest assumption that someone can ever make, leave alone the head of a company which is into funds / asset management.
secondly, while the effect of inflation is taken into consideration in the first instance, its conveniently forgotten in the next few examples where the author urges us to save. Real rate of interest can hit a person any which ways and reduce his purchasing power. This is more true in case of reducing interest rates since inflation tends to be very much cyclical and periodical in nature.
thirdly, while we talk about compounding, we should not necessarily talk about the stock markets because that might prod people to invest blindly in the equity mkts without considering the risks. Agreed that the equity markets tend to go up over long time horizons but the same can bring down a person's wealth as well!
Agreed saving is important but a few better assumptions could have made this article a much better one!!
An excellent and useful article. All of us know it, but most of us dont practice it. We need such reminders to rethink our investment plans. Thank you!
The article doesn't make any sense as it mention high interest rates which don't seem to exist. It could've been more helpful if the author pointed out some avenues for savings which fetch a higher yield. Of course there is the factor of inflation...blah..blah..blah!!!
