And in a position to be able to lose it. High interest are high because they are risky, so they have to pay well to attract investing. If you already have enough money to burn, you can put money into various high risk areas and win overall. If you only have enough to sink it into a single source, you could gain. Or not.

[–] psud@aussie.zone 2 points 5 days ago

Index funds are pretty incredibly safe. Pick one of the big US indexes and look at the graph since before the global financial crisis

[–] iii@mander.xyz 2 points 5 days ago

If you already have enough money to burn, you can put money into various high risk areas and win overall.

That's the angel investor strategy.

There's also lower risk index funds, that simply invest in the biggest N companies.

[–] photonic_sorcerer@lemmy.dbzer0.com 2 points 5 days ago

As long as you keep that money in index funds like MSCI World, S&P500 or DAX, you can wait out the bad times. Never sell, keep holding. Over decades this leads to large net profits.

[–] bountygiver@lemmy.ml 4 points 5 days ago* (last edited 5 days ago)

you just need to have unlimited time, at 3% annual interest, it takes 77.89 years to 10x your money. it just happens that 532 years is 6.8 times 77.89 years, therefore you would just put a 1 million multiplier on your money anyways. And putting 1 million multiplier on 1 million dollars is enough to become a trillionaire anyways

At 3% interest, you double your money every 23.4 years, how many 23.4 years do you have?

[–] Dudewitbow@lemmy.zip 3 points 5 days ago

thats why investments are inportant for long term. the problem we face as a society is that the majority of people cant afford to make these investments, as they are living day to day with their paychecks.

[–] elrik@lemmy.world 2 points 6 days ago

Yeah, I had to go down to 3% for it to even make sense.