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The Magic of Compound Interest: Myth or Fact, page-2

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DmitriMA

3,690 Posts.

235

08/04/22

12:27

Post #: 60739252
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Originally posted by Senseibullion: ↑

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.

What am i missing here?

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