As you can probably tell from recent posts, I’m moving away from “Personal Finance 101” topics and on to more complex topics around investing, taxes, and retirement. These topics can be straightforward if you live and work in one country, but they become infinitely more complex when you are trying to deal with two different tax jurisdictions.
I’ve now been on this quest to improve my personal financial situation for over six months, and I think I can safely say that I’ve mastered the basics. I’m living within a budget, I don’t have any credit card debt, I’m on track to pay off my student loans within the next year and a half, and I’ve built up my emergency fund. It’s now time to turn more seriously to the topic of investing my money.
Last week, I wrote about how $350/month can become $1 million in 30 years, thanks to the power of compound interest. Many of you commented that this was a fantasy, because the calculation assumed a 12% return, which was unrealistic. (I was THRILLED to see so much discussion, to be honest, because it helps me learn.) So this week, I did some more research to see what level of return I can realistically expect over time.
Austerity Kate 