Michael van Niekerk 🦀 ☕️ ⚛ on Nostr: nprofile1q…v7wld Given: 1. Interest of 7% per annum (low performing fund) 2. 30y ...

nprofile1qy2hwumn8ghj7un9d3shjtnddaehgu3wwp6kyqpq0dxafmw65292jj77fv3y8zmfc59lns47f4j6au2ahs47acy9ex7svv7wld (nprofile…7wld)
Given:
1. Interest of 7% per annum (low performing fund)
2. 30y

Then, compound interest is:
1.07^30 - 1
= x 6.61

So, apart from the 30k you've eaten up, you'll miss out on 198k of compound interest.

All in all a R228k mistake by two potting your funds.

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Satrix S&P 500 is averaging 19% per annum for the last 5y.
That 30k will become a R5,5m mistake if the fund keeps up its trajectory.