What's a good amount to invest and how much CAN you make?

plarka

I know it's like how long is a piece of string or whatever. I've just invested £670 in the HSBC FTSE All Share Index Tracker. I want to put in as much as I can, as I earn money in my new, very small business. But what is a good amount, that can really turn into something? I don't know much about investing. I mean, should I aim for £2000, £3000? £10,000 before I start putting money elsewhere? Sure if I was a millionaire I'd put 10's of thousands all over the place, but is there an amount that starts being something that could really end up being a lot? Probably a dumb question I know!

Also another dumb question. I know the past performance is no indication of future performance, but what have people made when they've made a lot? Is there a website I can look at? I mean, is it possible my money will multiply by 2? Or tenfold?

JoeCrystal

Personally, I would look it at slightly different way. While I love investing into a portfolio and hopefully can gain a return on it. Currently doing sustainable portfolio for a kick. I am also painful aware that I may lose everything in my investments which give me more awareness just on how much I am willing to put in. The fact I may and will accept the total loss meant that I am quite unwilling to put majority of my wealth into investment. At the moment, all the cost of investments make up 10% of my total savings & investments (not including pension). I am quite unwilling to go beyond 25% as cost of investments currently. While it may appears quite small as percent for some, it does allow me to sleep at night quite soundly. (The fact I tend to invest in high risk micro caps companies on AIM also taints my outlook on investments as percent.)

As for your question on how much people realised as percent of return... I don't know! That generally happens to other people .

Cheers

Joe

sabretoothtigger

The average for FTSE since 1983 is very roughly about 3% per year.
Not including dividends and excluding the depreciation of currency constantly ongoing

grey_gym_sock

with dividends reinvested, and allowing for allowing for inflation, the long-term average might be (say) 5% per year, which would imply investments might double in real value every 14 years.

that's just an average (and anyway, there's some room to disagree on the actual figures) ... there can be very good and very bad 14-year periods.