by SMO Team
An effective way to build wealth is to invest a regular savings rate. The compound interest effect develops its full potential over several years.
We show you an example of how a portfolio can develop if regular investments are made and a long-term performance of 8% takes place.
The analysis was performed for the periods of 3, 5, 10, 20 and 30 years.
The example is calculated very conservatively because the monthly savings rate remains the same over the entire period. For most investors, the savings rate will increase over time.
Assumption performance of +8% (stock market average) over several years:
Albert Einstein called compound interest the eighth wonder of the world.
Investments benefit enormously from a long-term investment horizon.
We already know that long-term investing is not what most people want. Get rich quick is much better and in the long run we're all dead. But it's still a good option. Many retirees are very happy that their long-term investment will enable them to enjoy their retirement.
You can calculate the potential of your investment with our free investment calculator.