Build up a nest egg of $1 million

You can build up a nest egg of $1 million by saving only $300 a month over a working career of 40 years.

If you invest this money to earn an average return of 8% per annum, it will accumulate to $970,000 over 40 years.

If you earn 10% per annum, it will accumulate to $1,673,000 over 40 years.

By investing in a large, well diversified fund of equities, the average return over a long period has been around 8% to 10% per annum.

If you invest in a low cost fund, the charge could be as low as 0.5% per annum. This allows you to keep most of the return for yourself.

However, if you invest in a high cost fund that takes away 2% per annum, you may have 30% of the total money disappear.