What shares you buying?

Hoyahamma said:
No


No it will be worth as I said.Quick mental arithmetic is rule of 72.


Divide the interest ( or return)rate into the number and that is the period of time to double

So 2400 becomes 4800 after 7.2 years.After a further 7.2 years it is 9600 add on that extra little bit and 10500.Round it down to 10000 if you like.

To become a millionaire then 100 K tomorrow will compound to 1 million in 24 years approx.Then 7.2 years later it will be 2 million .Just over 4 years later ,3 million .

First million takes 24 years,second million takes 7.2 years,third million takes just over 4 years,fourth million just over three years and so on

That's why the first million is always the hardest

These are just averages of course,and it depends on the timing of crashes in the future and how quickly the bounce back us .
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What?
Youre doing sums on for completely different situations. I never mentioned the £2400 lump sum nor did I disagree with them

You said £20 a month would be worth £2400 after 10 years. It wouldn't, it would be worth a lot more. And why did you pick 10 years for that example but 15 on others?
 
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42 said:
What?
Youre doing sums on for completely different situations. I never mentioned the £2400 lump sum nor did I disagree with them

You said £20 a month would be worth £2400 after 10 years. It wouldn't, it would be worth a lot more. And why did you pick 10 years for that example but 15 on others?
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Which was the bit you didn't understand .

His outlay is £2400 over the 10 years .

(20x12)X10 = 2400.

As I said put in 2400 today ,maximum compounding from day one.This means he would borrow 2400.Then instead of paying 20 per month,use that to pay off the loan .If you want 15 years then obviously it starts at 3600, over 15 years that will compound to over 15,000.

Try using a bit of common sense,or are you just going to crack on with "you didn't say this, that or the other".

Compounding is very easy,use rule of 72 and off you go .

You get nowhere saving monthly,the leverage speeds it up.Borrow whatever you are happy with and make the monthly payments.
 
Hoyahamma said:
Which was the bit you didn't understand .

His outlay is £2400 over the 10 years .

(20x12)X10 = 2400.

As I said put in 2400 today ,maximum compounding from day one.This means he would borrow 2400.Then instead of paying 20 per month,use that to pay off the loan .If you want 15 years then obviously it starts at 3600, over 15 years that will compound to over 15,000.

Try using a bit of common sense,or are you just going to crack on with "you didn't say this, that or the other".

Compounding is very easy,use rule of 72 and off you go .

You get nowhere saving monthly,the leverage speeds it up.Borrow whatever you are happy with and make the monthly payments.
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I have not misunderstood anything. You're still doing it. At no point have I ever denied the 72 rule thing. I have no idea why you're even using everything you've said as a line of attack as it has nowt to do with my point.

It's that you're being entirely selective with the monthly drip feed cos you're completely ignoring compounding to try & dismiss his plan just to chuck a few quid in once a month.
 
Hoyahamma said:
Which was the bit you didn't understand .

His outlay is £2400 over the 10 years .

(20x12)X10 = 2400.

As I said put in 2400 today ,maximum compounding from day one.This means he would borrow 2400.Then instead of paying 20 per month,use that to pay off the loan .If you want 15 years then obviously it starts at 3600, over 15 years that will compound to over 15,000.

Try using a bit of common sense,or are you just going to crack on with "you didn't say this, that or the other".

Compounding is very easy,use rule of 72 and off you go .

You get nowhere saving monthly,the leverage speeds it up.Borrow whatever you are happy with and make the monthly payments.
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£20 a month for 10 years at 10% interest (which I disagree with) would give a balance of £4,185 including £1,765 interest.

Definitely not worthless investing. It sounds sensible to me especially to pay say for a lovely retirement holiday.
 
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Hoyahamma said:
Which was the bit you didn't understand .

His outlay is £2400 over the 10 years .

(20x12)X10 = 2400.

As I said put in 2400 today ,maximum compounding from day one.This means he would borrow 2400.Then instead of paying 20 per month,use that to pay off the loan .If you want 15 years then obviously it starts at 3600, over 15 years that will compound to over 15,000.

Try using a bit of common sense,or are you just going to crack on with "you didn't say this, that or the other".

Compounding is very easy,use rule of 72 and off you go .

You get nowhere saving monthly,the leverage speeds it up.Borrow whatever you are happy with and make the monthly payments.
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I think the lad's point was you didn't mention borrowing the £2,400 until this post (it didn't register with me that's what you were suggesting) and you didn't apply any interest to the £20 being put away each month when saying that would be worth £2,400 at the end of 10 years.
 
mikemanc said:
I think the lad's point was you didn't mention borrowing the £2,400 until this post (it didn't register with me that's what you were suggesting) and you didn't apply any interest to the £20 being put away each month when saying that would be worth £2,400 at the end of 10 years.
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Nor has he factored in the cost of borrowing. Show me where you can borrow £2400 interest free for 10 years.
 
42 said:
Nor has he factored in the cost of borrowing. Show me where you can borrow £2400 interest free for 10 years.
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Yeah, I noticed that too. I get what he's suggesting, not sure it's a beginner's approach to investing (apologies if the person he was replying to initially is not a beginner). If your situation changes and you don't have the £20 to save any more you've still got to pay off the loan.
 
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have a look at the aussie banks

westpac, anz, commonwealth, national australia bank and bendigo and adelaide

plenty of bounce back yet and usually pay dividend ratios of over 10%
 
I've been looking at a company called Powerhouse Energy, they are developing a plant that turns plastic waste into hydrogen and electricity. Anyone else heard of these? Definitely fancy this as a decent long term investment.
 

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