No doubt, when it works, compound interest is the 8th wonder of the world (according to Warren Buffet). I don't disagree with this at all, but its this constant ringing in the statement i hear below that baffles me.
I hear too many millennials and other "new-age experts", oh and Tony Robbins, throw around this narrative "if i invest 10k every year into an index fund for the next 30 years with an average return of 10%, my money will be worth 3M blah blah blah".
Isn't that exactly what our superannuation funds do, exactly that? They almost always achieve 10%, less fee's. Yet to meet anyone with multiple M's in super.
And then which index fund in Australia has provided an average return of 10%? The market was sitting pretty at 6500 pre-gfc and over a decade later we are at 7500.
