# Investing in Nasdaq through Alipay Fixed Investment

Don't forget about 30 years of inflation; the returns you see are far smaller than the real value.
Here's an explanation. First, let's split this into two parts: the mathematical calculation itself and the practical feasibility.
1. The mathematical calculation is completely correct
Using the "future value of fixed investment formula" in finance, investing 1,000 yuan monthly, with an annualized return of 10%, compounded monthly, the results indeed match the chart:
• 10 years: about 205k yuan
• 20 years: about 759k yuan
• 30 years: about 2.26 million yuan
• The principal is 1,000 × 12 × 30 = 360k yuan, with gains of about 1.9 million yuan, ending with roughly 2.26 million yuan in the account.
So, from a purely mathematical perspective, these numbers are not incorrect.
2. In reality, achieving this is almost impossible; the issue lies in the premise of "10% annualized return"
1. A 10% long-term annualized return is a very high threshold for ordinary people
• The Nasdaq index's long-term annualized return over the past decades has been around 7%-10%, but this is the index's performance, not the returns an average investor can actually get.
• Ordinary investors face various losses:
◦ Exchange rate fluctuations, subscription and redemption fees, management fees, transaction costs
◦ Chasing highs and selling lows, timing errors, stopping investments midway
◦ Market black swan events (financial crises, tech bubble bursts, etc.)
• In reality, achieving a 7% annual return over the long term is already very excellent; 10% is almost at the ceiling for most people.
2. Persisting with fixed investment for 30 years is much more difficult than you think
• During these 30 years, you might encounter unemployment, illness, buying a house, getting married, raising children, supporting elderly parents, and other large expenses, making it hard to consistently invest 1,000 yuan every month without interruption.
• During market crashes (e.g., 30%, 50% drops), you are likely to panic sell or stop investing, breaking the compound interest premise.
3. Inflation will quietly dilute your returns
• The 2.26 million yuan after 30 years will have significantly less purchasing power. With a gentle 3% inflation rate, the actual purchasing power of 2.26 million yuan in 30 years would be roughly equivalent to about 900k yuan today, far from the "financial freedom" you imagine.
3. Rationally viewing this chart
This chart essentially uses an "ideal mathematical model" to demonstrate the power of compound interest, not to provide a realistic retirement plan:
• Its core message is: the earlier you start long-term investing, the more obvious the effect of compound interest, and this is correct.
• But it assumes an "annualized 10%" return, which is an extremely idealized assumption and does not represent the actual returns you can realistically achieve.