Please enjoy this 1-minute video (for those receiving this by email: please click on the blog title line above to view).
A primer on how compounding works. Over time, the effect is to have the money earned on your money, including interest, grow into ever larger sums. But, this takes time, so the sooner you start the better!
Many people expect to see their investments and saving grow immediately. That’s NOT how it works! Are market returns really the key to your portfolio value? No … they are not! What is the key? TIME! The graph in the linked article shows how using time to your favor, or letting time work against you.
Compounding ONLY WORKS with time on your side. The earlier you start, the better! The more you can invest, the better also. Both time AND money gets you over your goal line!
It takes time IN the markets, not market timing (the costs of trying to time the markets outweigh the benefits).
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