10 tips for clients on National Financial Awareness Day
Compounding interest when saving for retirement
The power of compounding interest is your greatest ally when saving for retirement. The concept here is that savings will grow exponentially as the growth begins to grow on top of itself. If you start with $100 and earn 10%, you gain $10. If you earn 10% again then you earn $11. This additional dollar is the 10% growth from the initial $10 of earnings. The earlier you start saving, the more time you allow your growth to compound on itself. This is why we stress that younger investors need to start as soon as they can rather than waiting until the future to worry about retirement savings.
Zachary Bachner
Investment adviser representative
Summit Financial Consulting