It has been a long time since I last blogged on WordPress. Long story short, let us get to the real business. This time, I will be sharing with you all the idea of compound interest and how much a difference it can make at your retirement age.
The whole idea of compound interest is mostly summed up in the following image, and I have made the following assumptions while doing the calculation:
- start at 30 years old
- a consistent deposit of $36000/year
- stop at 65 years old(retirement age)
As you can see from the image above, the difference of 1.5% each year over a period of 35 years of compound interest is a difference of 1 million dollars 35 years later.
I am sure you are amazed at the 1-million-dollar difference. When it comes to growing your wealth, start early and time is your best leverage.
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