Please enjoy this 1-minute video (for those receiving this by email: please click on the blog title line above).
“Stacking” refers the the fact that each contribution you make, at different times, have different timeframes in which they grow by compounding. Thus, each contribution has different outcomes.
This fact is rarely discussed so that people realize the importance of time to their savings and investing plans.
Your FIRST contributions have more time to grow, and your LAST contributions have less time to grow.
Thus, your FIRST contributions grow more, and your LAST contributions grow less.
“Stacking” refers to later contributions being stacked on top of earlier contributions. They stack on top of each other over time to sum up to your total value now.
The compounding concepts in the video are expanded further in “True Source and Cost of Delayed Savings” and in “Are market returns really the key to your portfolio value?“
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