The Miracle of Compounding: Contribute $9 a day, $250 a month over time. Accumulate $55,000, $200,000, $2,000,000 with NO taxes EVER. Use the most powerful force in the universe. How can compounding turn $9 a day into $2,000,000? Einstein is said to have called compounding the most powerful force in the universe. Compounding is money earning money on itself when it is invested. Give your bank $3,000 and it uses the money to make a profit. It shares the profit with you. After a year, your account has $3,030 assuming 1% interest. But at that rate, it would take you over 200 years to reach $2,000,000. However, when you invest $3,000 a year in a successful business, you could earn 10 to12% a year. After 10 years, you would have $55,000 because the business paid dividends and other people offered you more than you paid for your share of the business. After 20 years, you could sell it for $200,000 and after 40 years, perhaps $2,000,000. Compounding works best when you put your money to work in a successful business paying you dividends and stock splits. This kind of investment return is possible but t guaranteed. But wouldn't you rather have $2 million, more or less, than $150,000 in the bank?
Law Steeple has been in financial services for over 20 years. He was a managing executive of the sales units of a number of bank securities firms. He is one of the insiders who contributed to the The Insiders Guides set of buyers' guides edited by Dan Keppel. The guides provide specific ways to save on all financial services. The Insiders' Guides to Buying Discount Financial Services: Buy Direct and Save $3,000 Every Year is available at Amazon, Barnes and Noble, Abebooks. Law lives in New Jersey and Florida.