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A Fin24 reader writes:
I need advice on how I can make R1m in investments in the next 10 years.
Can R1 000 invested monthly bring me closer to my goal?
Gregg Sneddon from Cape-based financial planning firm The Financial Coach responds:
An amount of R1 000 per month will certainly get you closer, but you will still be way off the mark. You will only have around R199 000 in 10 years' time.
If you want R1m in 10 years, then you need to put away about R5 000 per month – assuming an inflation-linked escalation of 6% on the amount, and that you earn a return of inflation plus 5% over the period.
Do bear in mind that your R1m will not be worth that amount in today's terms, but will be equivalent to about R560 000 today because of inflation.
If you want R1m in today's money, then your final value will need to be closer to R1.8m in 10 years' time. You would then need to put away about R9 000 per month to get there.
- Fin24
I need advice on how I can make R1m in investments in the next 10 years.
Can R1 000 invested monthly bring me closer to my goal?
Gregg Sneddon from Cape-based financial planning firm The Financial Coach responds:
An amount of R1 000 per month will certainly get you closer, but you will still be way off the mark. You will only have around R199 000 in 10 years' time.
If you want R1m in 10 years, then you need to put away about R5 000 per month – assuming an inflation-linked escalation of 6% on the amount, and that you earn a return of inflation plus 5% over the period.
Do bear in mind that your R1m will not be worth that amount in today's terms, but will be equivalent to about R560 000 today because of inflation.
If you want R1m in today's money, then your final value will need to be closer to R1.8m in 10 years' time. You would then need to put away about R9 000 per month to get there.
- Fin24
