“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” – Albert Einstein
Would you rather have a million dollars today, or a magic penny that doubles every day for 30 days?
The magic of compounding occurs in the later years.
Would you rather have the power of compounding working for you or against you?
Traditional IRAs and 401(k)s are infested with deferred taxes.
Deferred taxes are compounding debt. Every day they are unpaid, they compound against you.
This material was prepared by Ed Slott. Ed Slott is not affiliated with Bailey Wealth Services or LPL Financial.
This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used to not reflect the deduction of fees and charges inherent to investing.
Investing includes risks, including prices and loss of principal.