Compound interest is one of the most powerful ways to build wealth.
See this infographic to learn how compound interest works and how it can help you grow your assets exponentially over time.
The Power of Compound Interest: A Key to Building Wealth
WHAT IS COMPOUND INTEREST?
Simply put, it’s earning interest on interest.
HOW DOES IT WORK?
When you make an initial investment, your principal starts accruing interest. As you earn interest, the account balance grows. Over time, you continue to earn interest on the growing balance. This leads to the exponential growth of your long-term investments.
COMPOUND INTEREST VARIABLES
Principal
The amount of money initially invested.
Interest Rate
How much interest do you earn?
Compound Period
How frequently are interest compounds—daily, monthly, or annually?
Time
How long is the money left to compound?
COMPOUND INTEREST IN ACTION
*This is a hypothetical interest rate that is not representative of any specific account
START TODAY
The earlier you start saving, the more exponential growth can occur. But it’s never too late. You can harness the power of compound interest at any time. Talk to the financial Sherpa about how you can start saving today.