Each time you reinvest your income, you increase the potential for your savings to grow over time. That’s why investments that can generate an attractive and regular income, such as multi-asset income funds, can be a powerful tool for investors looking for long-term capital growth.
Our investment calculator shows the power of compounding. Simply choose how long you want to save for, from five to 50 years, and how much you want in your savings pot at the end of this period, from EUR 50,000 and EUR 1,000,000.
By selecting different growth rates, of up to 10% per annum, you can see how much you should expect to save on a monthly basis to achieve your investment goal.
Of course, you should also take into account inflation in your savings plans. The tool therefore also shows how much your savings will be worth in real terms given a 2% annual inflation rate – this is the rate targeted by several central banks.
Monthly amount to save
To reach your target of 250.000 € in the timeframe given your expected return, you would need to save 306,61 € per month.
However, taking into account an annual inflation rate of 2%, your final amount in real terms will not be 250.000 €, but 138.018 €. You will need to save even more to achieve your target when taking inflation into account.
*Remember that the greater the expected return or income, the greater the risk you must be willing to take. Please note that this tool is for illustrative purposes only and does not take into account any income derived from other sources, such as state benefits. Thanks to the power of compound returns, even a modest amount invested on a regular basis can potentially grow into a large savings pot over time. And if you are able to reinvest any income produced by your investments, the effect of compounding can be even greater. The value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested.
View our full offering of income-related tools, videos and expert insights.