The Power of Compounding

“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.

Copyright ^© 2022, Ed Slott and Company, LLC Reprinted from The Slott Report, 2022, with permission. Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.