How To Become a Millionaire Investor
One of the great myths of investment is that you need an MBA, a
Porsche and access to lots of cash before you can take part.
Fortunately nothing can be further from the truth and with the
right long-term approach; almost anyone can become a millionaire
investor.
Long-term investment strategy
In short, this article will explain a low-risk investment
strategy that could allow you to retire younger, travel more,
buy expensive cars, pay off your mortgage or simply enjoy a
comfortable lifestyle with a greater level of financial security.
Other investment strategies might provide greater returns in the
short-term, but will require a significantly higher investment
and much more risk.
Understanding the importance of compound returns
When you put money into the bank, you earn interest on your
savings. The next month, you will earn interest on that interest
as well as the money that you originally put in.
This cycle will continue each month and as long as you do not
take any money out of your account, you will be earning
increasingly higher amounts of interest, on top of your original
contribution.
The same principle applies to investments in shares and
investment funds. By re-investing dividends into the purchase of
additional shares or funds, you will be able to generate
additional earnings, which you can then re-invest again and
again.
Turbo boosting your compound returns
You can improve the performance of your compound returns by
adding additional contributions to your savings account on a
regular basis and by selecting investments that provide higher
annual growth rates.
The powerful effects of compound returns are best seen over a
long period of time. The table below shows the returns that can
be achieved by making monthly contributions of