Beauty of Long-Term DCA Investing

No. of Years	Total Investment (RM)	Total Income Earned (RM)	Total Fund Value (RM)
1	5,300.00	407.59	5707.59
2	7,100.00	1,022.27	8,122.27
3	8,900.00	1,863.45	10,763.45
4	10,700.00	2,952.41	13,652.41
5	12,500.00	4,312.36	16,812.36
6	14,300.00	5,968.74	20,268.74
7	16,100.00	7,949.35	24,049.35
8	17,900.00	10,284.61	28,184.61
9	19,700.00	13,007.79	32,707.79
10	21,500.00	16,155.27	37,655.27
11	23,300.00	19,766.86	43,066.86
12	25,100.00	23,886.09	48,986.09
13	26,900.00	28,560.59	55,460.59
14	28,700.00	33,842.44	62,542.44
15	30,500.00	39,788.62	70,288.62
16	32,300.00	46,461.44	78,761.44
17	34,100.00	53,929.07	88,029.07
18	35,900.00	62,266.07	98,166.07
19	37,700.00	71,553.99	109,253.99
20	39,500.00	81,882.03	121,382.03
21	41,300.00	93,347.77	134,647.77
22	43,100.00	106,057.92	149,157.92
23	44,900.00	120,129.23	165,029.23
24	46,700.00	135,689.38	182,389.38
25	48,500.00	152,878.02	201,378.02
26	50,300.00	171,847.93	222,147.93
27	52,100.00	192,766.21	244,866.21
28	53,900.00	215,815.61	269,715.61
29	55,700.00	241,196.06	296,896.06
30	57,500.00	269,126.22	326,626.22

Risk Profile	Moderate
Initial Investment	RM3,500.00
Saving Period	30 years
Rate of return	9.0% per year
Additional investment	RM 150.00 per month
Recommended Fund	PB Balanced Fund

However i need to clarify that this illustration is supplied in response to your specific request and is for your use only. It is based on hypothetical future inflation rates and investment performance. The illustration is intended as a financial planning tool to assist individuals in their financial planning. There can be no assurance of future performance as actual returns will fluctuate with market conditions. The illustration reflects compounding at a hypothetical fixed rate of return and rate of inflation and is not intended to project the performance of any specific investment vehicle. Please note that periodic investing does not ensure profit and does not protect against loss in declining markets.

Many people invest but only some become wealthy. Why?

The mistake many people make when investing is that they treat their investment as saving.

So what is the difference between saving and investing? Saving is what you do to build up funds for something, like a holiday, and when you have the amount saved you withdraw your capital from your investment and spend it on the holiday. After the holiday you have nothing left, and start the process all over again.

But building wealth is different. People who want to build wealth invest their money for the long term in 'growth assets' such as shares and property.

Their strategy is to spend the income that the investment produces, but to leave the capital invested. They don't withdraw the capital, so it stays there growing and compounding, and producing more and more income each year.

If you do this it will take you quite a while longer initially to get to your investment goal , but in the long run you will find that the extra wait has been worth it. As the years go by, you will have an increasing additional income stream from your investments and your standard of living can rise accordingly!

Investment Goals

Through out the time, we keep on mentioning about investment goals and our investment vehicles must be tailored to suit our investment goals. But then do we really know how to draw out our own investment goals and the quantum of each goals ranging from short, medium to long term.

And here is some examples of Investment Goals :

Short term (1-3 years)

• Overseas holiday
• Car
• Taking time off work to care for a baby

Medium term (3-7 years)

• Deposit on a house
• Boat
• A sabbatical or extended break from work

Long term (7+ years)

• Childrens' education
• Holiday house
• Retirement/early retirement

There is one thing we need to take note of is the key to successful investing which include identifying your investment goals, and the time frame over which you will invest. When you already have an investment goal well drawn out, you are in a head start for a successful investment. :)