29 May 2020
Wealth Potential
Grow Your Wealth: The Power of Compound
BY EMILY MATTHEWS | FINANCIAL ADVISER AT FUTURE KEY FINANCIAL

If you haven’t heard the rice and chess board story, I recommend reading it here.

Albert Einstein believed compound interest was the most powerful force in the universe. He famously said “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” This statement is absolutely evident in the rice and chess board story.

We totally agree with Einstein’s view on compound interest. Taking advantage of compounding benefits is great way to grow your net wealth overtime.

Can you afford to save $50 a week?

By consistently investing a regular contribution into an investment portfolio, you could achieve HUGE savings in 10, 20 or 50-years! The table below highlights the opportunity to create a fortune with small, regular contributions.

Weekly investment Value $

 

TOTAL SAVINGS $

10-Years*

 

20-Years*

 

50-Years*

 

$50

$45,737

$168,194

$3,826,303

$100

$90,120

$332,724

$7,579,921

$150

$134,503

$497,254

$11,333,539

$200

$178,886

$661,784

$15,087,157

$300

$267,652

$990,844

$22,594,393

*The above assumes a starting investment of $500 with the above contributions added consistently and earning 10% per annum (net of fees), compounded monthly for the specified period. Furthermore, these calculations assume 100% of earnings are automatically reinvested.

Please Note: The above calculations do not take into consideration your individual tax liability.

Where to invest?

The most complicated aspect of regular investment is determining the most appropriate investment vehicle or structure and investment selection. To find out how you can access 10% annual returns, contact us for a complimentary discussion.

 

Disclaimers
  • The above table is a model, not a prediction. Results are only estimates, the actual amounts may be higher or lower.
  • The content of this article is general information only and should not be considered as personal advice to you. Prior to investing, you should consider whether you should get advice from a licensed financial adviser.

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Daniel Mathers is an authorised representative (1238174) of Hunter Green Pty Ltd (AFSL 225962). Emily Matthews is an authorised representative (1261200) of Hunter Green Pty Ltd (AFSL 225962). Future Key Financial Pty Ltd ACN 608 953 840 is a Corporate Authorised Representative (1238170) of Hunter Green Pty Ltd (AFSL 225962). The information on this website contains general information and does not take into account your personal objectives, financial situation or needs. We recommend that you seek for specific financial advice if you require advice that takes into account your personal circumstances.