But unfortunately your plan wouldn’t work as well here in OZ because we have to pay capital gains on investments. We don’t have a tax free ISA.

Andrew

Thanks for sharing this article. I cannot agree more fully about holding on to stocks and the returns in 1, 2, 5 or more years. Many people lose money because of knee-jerk reactions to short-term market fluctuations. They lose because they sold when the shares are trending down in panic selling and they buy back high when all the funds have already bought back into the market.

I have been able to make returns of now more than 100% over a 5-year period because I did not sell when my stocks were one-third of their original value.
Tiat, Singapore
P.S: I agree with Zig Ziglar’s comments about “You can have everything in life that you want if you will just help enough other people get what they want”. I came across a report by Bob Proctor and Stephen Pierce recently that talks about the very same thing. The report can be found at Abundance Law

Compound interest occurs when you never actually take any of your invested capital out. If you invest in mutual funds you will be investing in many different companies in many different sectors. There is no set rate but if you take advice from the best you are certainly capable of getting at least 20% gains (I have stated in the article who I recommend for this based on their results). These are averaged returns so 1 year you might get 7% but another year 67%. In time your investments will be growing at an incredible rate. (Again, never even think about taking any of your capital back out of the market. At times you can ‘put your money into cash’ for security reasons when the market isn’t doing so well but this will all be explained by whoever you invest with).

Daniel, the analysis of the UK market I got from a book called, ‘The Fast Track to Financial Independence’ by Paul and Stephen Sutherland. I’m sure this info could be found online somewhere as well. I believe the first 4 chapters of this book can be obtained freely - see the link in the last paragraph of the article ‘Fast Track Education’.

Thanks Daniel and best of luck.

I have one question though, how do you get compound interest on investments?

I though that investment interest depends on how the company does and there’s no set investment rate

o and I also want to know if you have a link or some prove of the historical analysis of UK shares between 1969 and 2000

that would be very helpful,

thanks,
Daniel