101 Eisenhower Parkway
Click here to launch PBS’s feature entitled The Retirement Gamble and watch the Wall Street executives squirm as they attempt to defend their usury fees and expenses.
Further corroboration that investors are better off ignoring the hype of “active investing” and investing in Index or Index-like, No-Load investments. Curious about how actively managed investments have performed compared with passive, over the last 10 years?Click here for the report.
The rich seem to keep getting richer without having to work harder than anyone else. But just how do they do that? One of the secrets the wealthy use to create more wealth is to invest their money wisely. In fact, they even earn more money from the interest on the money they’ve invested. Surprise! Money can grow on trees after all. You can do the same with your money by depositing it into accounts that pay compound interest.
Let’s begin by looking at how basic interest works:
It is much smarter to put your money in an account that pays compound interest. This is where you can really watch your money grow, and make more money from your initial deposit.
Here is how compound interest works:
You can find out how long it will take your money to double in a compound interest account by applying a very simple calculation:
Take the interest rate you’re earning for your money and divide it into 72.
For example, if you’re earning four percent interest, you would divide four into 72 and learn that it will take 18 years to double your money. If your money is in an account that pays six percent compound interest, it would take 12 years to double your money.
These examples illustrate how your money will be compounded on an annual basis. Some financial institutions will compound your interest on a more frequent basis, such as quarterly or monthly. Some even compound it daily.
Investing your money in an account that will earn compound interest is a wealth-generating secret you can’t afford to neglect. There is no easier way to increase your wealth than just investing your money and watching it grow.