ISAs <\/a>\u2013 in either cash or stocks and shares \u2013 but from 2027, people will only be able to put \u00a312,000 a year into cash if they are under 65, with the remaining money for investments alone.<\/p>\n\u201cAt a time when cash savings feel comforting but are often losing value in real terms, it\u2019s vital that people understand the power of long-term, diversified investing,\u201d said Mark Burges Watson, co-founder of Kaldi. <\/p>\n
\u201cEven very small, regular contributions compound dramatically over time. The numbers speak for themselves,\u201d he said.<\/p>\n
The figures also show the value of investing over a longer period of time. <\/p>\n
In the best-case scenario with 11.49 per cent annual returns, investing over 20 years would lead to an end pot of \u00a378,180.31, and over 40 years it would be \u00a3766,018.58.<\/p>\n
The longer the money is invested, the more opportunities there are for someone\u2019s cash to compound and grow.<\/p>\n
The figures calculated by Kaldi assume the money is held in a stocks and shares ISA \u2013 so not tax is owed on the gains \u2013 and takes into account fees of 0.15 per cent<\/p>\n
It says the 7.57 per cent and 11.49 per cent range of performance was based on the previous performance of Vanguard LifeStrategy\u2019s 100 per cent Acc fund, though this fund could see different returns in the future.<\/p>\n
Funds allow investors to put their money into a range of different stocks and shares at once, meaning they are less reliant on individual companies to do well on the stock market<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Investing over a long period of time can lead to impressive returns – even if you’re investing small…\n","protected":false},"author":2,"featured_media":175627,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,329,330,62852,111,139,69,244,245,294,4578,1817],"class_list":{"0":"post-175626","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-investing","11":"tag-investments","12":"tag-isas","13":"tag-new-zealand","14":"tag-newzealand","15":"tag-nz","16":"tag-personal-finance","17":"tag-personalfinance","18":"tag-retirement","19":"tag-savings","20":"tag-stock-market"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/175626","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=175626"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/175626\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/175627"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=175626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=175626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=175626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}