Wealth Simulator
Project Your Financial Future
See how a consistent monthly contribution grows over time. Compare the safety of a Term Deposit against the potential growth of a Simple Index Fund.
⚙️ Simulation Inputs
⚠️ Reality Check
This is a mathematical model, not a promise. While deposits are generally guaranteed (up to limits), index funds fluctuate. In real life, the index line would be jagged, not smooth.
Growth Trajectory
Visualize the power of compound interest over 10 years.
Final Portfolio Value Comparison
The Cost of Safety
While the Deposit feels safer, inflation often eats away at its real value.
The Index Fund leverages the equity market. The gap between the two lines in the chart represents the "Equity Risk Premium"—the extra return you get for enduring market volatility.
Yearly Breakdown
Detailed view of principal accumulation vs interest.
| Year | Total Contributed | Deposit Value | Index Fund Value |
|---|
Planting Your Financial Forest
Wealth isn't built in a straight line; it grows exponentially. This simulator helps you visualize how patience and consistency turn small monthly deposits into significant life choices.
📈 The "Hockey Stick" Effect
When you run this simulation for 20+ years, you will notice something specific: the line starts flat and suddenly shoots up at the end. This is the Exponential Phase.
In the first 5-7 years, your portfolio growth comes mostly from your own hard work (your deposits). But eventually, you reach a "Crossover Point" where your investment returns earn more money in a year than your salary does. That is the moment you achieve financial momentum.
🧮 The Rule of 72
Want to do a quick mental check on your numbers? Use the Rule of 72. Divide 72 by your annual interest rate to find out how many years it takes to double your money.
- At 4% (Bonds/Deposit): 72 ÷ 4 = 18 years to double.
- At 8% (Stock Market/Reksadana): 72 ÷ 8 = 9 years to double.
- At 12% (High Risk): 72 ÷ 12 = 6 years to double.
This shows why risking a higher return rate (shifting from deposits to stocks) drastically speeds up your timeline.
Simulation Reality Check
What about Inflation?
This is the silent killer. A billion Rupiah today will not buy a billion Rupiah's worth of goods in 20 years. To account for this, you can subtract the inflation rate (approx 3-4% in Indonesia) from your expected return. If you expect 10% returns, input 6% into the simulator to see your "Real Purchasing Power."
Are market returns steady?
No. The simulator draws a smooth line, but reality is jagged. In the stock market, you might have a year of -20% followed by a year of +30%. The "Average Return" is just a long-term mathematical mean. Do not panic if your real portfolio dips; volatility is the price of admission for higher returns.
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