i hv initial capital RM3k wan to invest in share market.
each mth i'm going to pump in RM500 for 25yrs.
and i only buy in those blue chip share.

am i able to achieve RM10m when age of 55?
pls advise.

N = 25 years

PMT = -6000

PV = -3000

FV = 10,000,000

solve i



Xuzen

sorry. i 'm new to here.
i dun understand at all,
can u xplain?

I think chances are very very low to achieve 10M, not to say impossible tho, nobody knows what happen tomoro.

but 500 X 12 = 6k X 25 = 150K

with 150K spreadout to achieve 10M is quite a long shot. But if you've 150K now and you've brave heart, last 2 months you buy TAWB warrant from 0.01 it went up to 0.10 you could've made a cool 1.5M

By using a financial calculator, you can solve i (interest rate).

Basically the answer is yes if you can guarantee that your return on investment per annum generate the aforementioned rate of return.

I cannot calculate i now because I left my calculator at home.

Sorry I don't know how to use the excel version.

Whether you can achieve a consistent result of rate of return for the whole duration of 25 years is another story entirely.

Xuzen

Doing some quick scenarios using this website http://www.moneychimp.com/calculator/compo..._calculator.htm , I've determined that you would need to achieve an average annual return of over 25% to hit 10 million. In short, it is impossible.

At an unlikely, but still vaguely plausible return rate of 10%, you would accumulate about $680,000.

At a somewhat optimistic rate of 8%, you would accumulate about $494,000.

At a conservative rate of 5%, you would accumulate about $310,000.

Note that these are nominal figures based on the value of money today. Future money would be depreciated by inflation.

Thanks WanKY,

To thread starter: 25% rate of return per annum consistently for 25 years will give you RM 10M. No professionally run fund has achieved such stellar performance yet. Maybe you can be the first in the world. Good luck.

Xuzen

http://biz.thestar.com.my/news/story.asp?f...44&sec=business




Not 25% but ....

But ... not matter what the article said ... personally, I'll rather pick my own stocks

This post has been edited by Malefic: Jun 22 2009, 08:43 PM

That's how a true warrant queen is borned ? Isn't it, Moorish Queen ?

hmm.. interesting...
yr return of 25% for 25yrs...

or, alternatively, u need to find a/few stock(s) that WILL give you 25% pa for the next 25yrs...

put all eggs into 1 same basket later if ur basket fall then all ur eggs will broken

initial capital of 3k for blue chip?

or a few ringgit a day to buy toto. Maybe within 25 yrs u may hit jackpot......
(meanwhile... I will go & buy some BJTOTO share )

yes, its possible if u can get at least 1.9% compounded per month appreciation on ur monthly total capital (basically 23.7% per annum)

calculation has taken into consideration that RM500 is added monthly not lump sump of 150k (RM500 x 12 months x 25 years)

Good Luck...

This post has been edited by asambuffett: Jun 24 2009, 07:10 PM

Jackpot for BJ toto?haha, well, i not sure whether this is true or not...but i heard rumors from the opposition party telling on how the perak crossparty duo got their money from BJtoto of kononnya kena loteri..this would mean a clean money from them....i would rather stay in stock market instead of gambling...

... 10MILLION??....unless you take a lot of risk but there a price you need to pay for which are you may lose all your capital


Learn how to walk properly first before you think of flying.....just my two cents

with my investment return of roughly 1600 per month from dividend i also never dream of achieving 10 million

If you must dream so high, then I believe you must take extreme risk. I believe he can do it, he has 25 years, and he just need to mark each down turn when KLSE is at 800 or below and unload all his cash and under wear on certain warrant. just need to do 4 or 5 times and walla you're multi millionaire, by then if I'm still around belanja me KFC.

Hi darknight81,

Mind to share on how much investment are needed in order to have roughly investment return of 1600 per month?
thanks...

300k

That is abt 6.4% ROI p.a. A realistic figure.

Xuzen

erm... not really becos my figure is agak agak only just to give you the idea ....is more than 1600 per month actually

6.4% ROI is already good, hw, more is much better...