Jumpers for Goalposts and the power of long term investing !

 

Well there’s a sentence you never thought you would see…

 

I was reminiscing over the weekend and was reminded of this fantastic piece of kit.

 

This was the football of choice in the 70’s and early 80’s as you could play with it anywhere. It could be spotted on council estates and playgrounds up and down the country.

 

You wouldn’t risk playing with your caser in the street in case you burst it!

 

The Trophy was virtually indestructible as long as it didn’t go in a thorn bush.

 

“What has this got to do with investing?” I hear you shout.

Well I have been thinking a lot lately about long term investment strategies and the power of regular investing over a clients lifetime.

Around the time the Trophy was available in 1980, had you started investing £10 pm into a fund that tracked the S&P 500, you could have received an average return of 11.65% pa.

Based on this the value of your fund would now be £88,720 !!

Had you inflation adjusted your £10 pm ( using 3% average inflation rate ) the value would be over £116,000.

 

A £50pm inflation adjusted monthly investment would of been worth over £580k …..

So the message is start saving early and on a regular basis the power of long term investing and pound cost averaging are your friends.

If you would like more advice on how to get started just get in touch.

 

Just to be clear this does not constitute advice just my own thoughts and ramblings, but just to be clear …….

The value of investments can go down as well as up, so you could get back less than you invested.

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