How to become a Multi millionaire risk free

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Everybody likes to be a multimillionaire in a low risk route. Is it possible to become one ?

In this blog we will explore a method to become a multi millionaire through risk free methods.

Is investing in stock market the way , doesn't seems to be in this downward spiral. Interest rates are also not high to provide a good return.



Power of compounding

If you are 25 you can expect to have 10 million in your kitty by the time you turn 60.
Of this the amount you actually need to invest is only 2 million. Remaining 8 million is from the interest earned over years. This is the power of compounding.


What is compounding?
In a simple interest scenario you earn only against the principal. But in Compounding you earn for your interest also. this is one of the best tools an average investor can look at for amassing wealth.Compouding grows your money exponentially where simple interest grows your money linearly.



Here the key is not investment vehicle you choose but 2 other things

1.Start early

2. Invest regularly



Start Early

Earlier you start earlier you reach your target. If you start early the lesser will be your outgo.


Age you start -----Years to 60 ------------Investment per month

25-----------------35--------------------- 5000
30---------------- 30----------------------7000
35---------------- 25---------------------11000
40---------------- 20---------------------18000

Investment per month to reach 10 million by 60 ,assuming 8% yield every year compounded


Invest regularly

Investing regularly is another most important factor . Your investments will grow faster if you save 5000 every month rather than 60,000 every year because, 5000 every month earns another 2000 every year as monthly interest every year. In effect if you invest 5000 every month it is equivalent to 62000 in a year.

At 8% you reach 1 million in 11 years at 12% in 10 years and at 20% in 8 years. What it matters is the number of years.

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