Quotable Quote

Albert Einstein said,
“The eighth wonder of the world is compound interest.”

Time is a great friend for patient stock market investors, who benefit from “compounding.” The magic of compounding happens when you don’t touch your original investment and let returns add up. For example, if you invest $500 a year (about $12.50 a day) at a 10 percent annual return, you would have over $10,000 after 11 years. Invest $1,000 a year at a 10% return, and you accumulate $10,000 in just 7 years. That is equal to more than $1 million in 48 years.

Investing sooner gives your nest egg more time to grow and compound, too, just like magic.

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