Owen Raszkiewicz

So I'll just forecast.

So this is from Vanguard.

Everyone knows who Vanguard is, the big fund manager, ETF provider, whatever.

I've gone too too far.

So Vanguard estimates the returns over the next 10 years to be between 0.5% and 1.5% over the next 10 years.

So that's 1.5% a year at most.

That's what they say, 0.5% at worst.

After tax, you're not making a lot of money.

Now, I just want you to think about that because if you've got excess money that needs to be invested or you're holding off, imagine my original figure of compounding at 15% versus compounding at 0.5 or 1%.

For shares, and by the way, these are never right.

I just throw them up here for context.

For shares, which is another word for the equity market,

They believe Australian shares will return between 4% and 6%.

International shares, 4.5% to 6.5% per year.

Again, not 15%.

But still, you've got to remember, as Susan said, dollar cost averaging.

Sometimes the returns will likely be lower.

Sometimes when the market falls, the returns will likely be higher.

The one thing about investing in risky things like shares and property is that at exactly the time when it feels most scary is exactly the time when the returns are typically highest or the potential returns.

So you've got to master your own psychology before you even consider doing this type of thing.