May 19 2022, 03:06 AM
QUOTE(guy3288 @ May 18 2022, 09:40 PM)
you seem to think people who put millions in FD dont know how to invest
inflation will eat away their money etc.
You forgot to look at the quantum.
the actual amount of money you can get from it
be investment or FD.
example
A has 500k to invest - go hard for 10% return.
Good year got 10% return =RM50,000,
passive income RM4166 pm. happy.
Bad year?
B has RM10M in FD ,monthly got RM20833 to spend
Does he need to worry about inflation?
i dont think inflation will eat away his money.
High risk high return, just how high the risk i need to take?
to earn enough to spend.
this is exactly how i view it too. but for some reason, people still keep emphasising on diversification. actually really wanna know why people still insist on diversification and emphasise on inflation. is it because inflation will definitely have higher impact than losses from bad year?inflation will eat away their money etc.
You forgot to look at the quantum.
the actual amount of money you can get from it
be investment or FD.
example
A has 500k to invest - go hard for 10% return.
Good year got 10% return =RM50,000,
passive income RM4166 pm. happy.
Bad year?
B has RM10M in FD ,monthly got RM20833 to spend
Does he need to worry about inflation?
i dont think inflation will eat away his money.
High risk high return, just how high the risk i need to take?
to earn enough to spend.
Quote
0.0781sec
0.35
7 queries
GZIP Disabled