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Compound interest is called the 8th Wonder of the World. The sooner you start the better.

Compound Interest

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Compounding is a function of the return you get and time. If you start with .01 cents and it compounds for 30 days, did you know you would have over $5,000,000.00 dollars!

For most people a 3 to 7 percent is realistic, but time is a diminishing commodity. So the younger you are, the more time you have to really make compounding work for you, and the wealthier you can become.

The next best thing to starting early is starting now. Consider this example: Sara, a 22-year-old university graduate, saves $300 per month into an account earning 10% per year for 6 years. Then at age 28, she starts a family and decides to stay home with the children full time. By then, Amy had kicked in $21,600 of her own money. But even if she doesn’t contribute another cent ever, her money would grow to a million bucks by the time she turned 67, just in time for her retirement!


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