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3/3/2016

2 Comments

The Eighth Wonder Of The World - Compounding

 
I want to share a tip this week about the power of compounding. Consider this:
​
If you invest $2,000 per annum between 19 and 25 and then stop investing completely, this will grow by more than if you start investing $2,000 pa every year in the very same investment between 26 and 65 years. 
Starting just 7 years earlier means you can invest 14 times less.
That's the magic of compounding.

​Now you might be thinking, “it’s too late for me.”   Is it?

If you are a woman currently aged 50, your life expectancy is near age 86.  And statistically only half will be dead by then, so the other half is living longer. So conceivably, someone in their 50's has an investment time horizon of at least 40 years.

Plenty of time for the "8th Wonder of the World" to be working for you.

Mt tip.
​No matter your stage of life, find a few dollars. Invest them. Let compounding work for you. ​
​If you don't know how, contact us for help:
Picture

​Don't think you have $2,000 to invest.

​Adopt our Espresso Strategy and get compounding working for you now.
2 Comments
Jeremy Kwong-Law link
2/3/2016 08:28:26 am

Great example. If only young people are more aware of this fact (no, law of nature) then maybe we can get them to care about their savings and super more.

Reply
Tony
2/3/2016 06:04:53 pm

Thanks for your comments Jeremy.

Reply

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