Doesn’t sound very convincing, does it?
Of course it does not sound real. But you can actually make a cool million by investing merely $$ 1.
And if you are still unsure of how, read on.
Of course it is not that easy. You will have to wait for several years and you have to be clever enough to invest in a really profitable fund that pays high interest. If you are thinking of making it overnight it is impossible.
I am talking about a very long period of time. Could be 25, 30, 40 or even 50 years. Well, if you are serious about making a cool million from a single buck the least expected of you is to have that much patience. (probably it might not work for most of you – but will certainly be a great contribution to your child’s future if you give it a thought.)
The process is simple. The interest will be compounded every month. I just calculated it and it works. If you are talking about the modest interest rate of 12 per cent per annum, that comes to 1 per cent per month.
And if you invest money at that compound rate your money will increase 20 times in 25 years. That means for every dollar you invest you get 20 dollars. And this is a one-time investment. Chip in one dollar now (or whatever amount for that matter) and you can get 20 dollars .
If you are lucky enough to find good mutual fund programs that pay you higher interest rates the process is much faster. Or your money multiplies much faster.
To actually get a cool million with the investment of a single buck, you need 115 long years; your grandfather should have planned it for you.
But for your life you can plan it this way. Find a well paying mutual fund. To make a cool million you have to spend $ 2500 at the rate of 24 % , 600 at the rate of 30 % and merely $ 140 for 36 % for 25 years.
Unfortunately, this magic of compound interest doesn’t work for short terms. It gives some dividends, yes. But it’s not all that great.
So, my suggestion (and this suggestion particularly works for youngsters), put aside part of your pocket money for about , say six months, and forget about it (not literally of course). Then, all of a sudden probably around your retiring age, you will find yourself very rich with the amount of money that you had never seen at one time.
This really works for children. I wish some one had suggested or persuaded me during my childhood.
Start it as young as possible. Say, a child at 5 starts putting aside $ 1 a week from his pocket money. In five years the money will amount to more than $ 500 dollars. And that money invested the way described above will reap well above a cool million by the time the child is in his thirties and is ready to settle down.
Oh God! at 33, I can’t do much thinking about it. I only wish I had that brain when I was younger.