Begin with the currency switch to choose between SEK or USD, set how much you have in startup capital, how much you would like to save per month, and lastly how many years you plan to save. Now watch how much more money you can make with an 8.5 % average annual return than just keeping them in an account without any interest rate (or stashing them under the mattress).
Why 8.5 % was chosen as the average annual return?
The main purpose with Calcnium is to show how much compound interest can impact our savings. But to get the advantage of compound interest, we need to somehow earn interest, year after year after year. And certainly there are many ways of doing this, but one alternative could be to invest in an index fund. When we search for the average annual return of index funds for the last 40, 30, 20 years, we often get results somewhere between 6 - 10 %. 8.5 was chosen for Calcnium as an optimistic but still possible average annual return in years to come.
But remember that historical return is no guarantee of future results.
Why 8.5 % was chosen as the average annual return?
The main purpose with Calcnium is to show how much compound interest can impact our savings. But to get the advantage of compound interest, we need to somehow earn interest, year after year after year. And certainly there are many ways of doing this, but one alternative could be to invest in an index fund. When we search for the average annual return of index funds for the last 40, 30, 20 years, we often get results somewhere between 6 - 10 %. 8.5 was chosen for Calcnium as an optimistic but still possible average annual return in years to come.
But remember that historical return is no guarantee of future results.
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