I took the Scott Pape, Barefoot Investor table a few steps further to show what the returns would be using the QAV 19.5% compound rate instead of the 10% for the index.
Jen suggested I also calculate something which I have talked about for a while, investing private school fees in the market instead of paying for an education.
I did this calculation using average figures from the Good Schools website for fees.
The headlines write themselves.
If you are a teenager, saving $5000 per year for 10 years and investing it using QAV means that you would have $92m at age 60.
Sending your kids to government schools and investing the private school fees in an index fund means that by age 60 you would have $24m, using QAV you would have $1.58 bn. These fees are for Catholic schools.
Using Independent school fees, an index return would give $47m at age 60, or $3bn using QAV.
So sending your kid to a private school costs a QAV investor between $1.58 billion and $3 billion.
NWH jumped over 30% up yesterday after a trading update and divided guidance.
I placed a buy price alert in SD at $2.76.