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The Power of Compounding

Grandmother and grandson in a pile of leaves - The sooner you start, the sooner you have the power One of the beauties of investing is that you have the potential to earn money on your money. It's called compounding and here's how it works...

Say you have $1,000. If you invest it and your investment earns 8% every year, after one year you'll have $1,080. During the second year, you'll earn 8% on the $80 you earned the first year, plus the original $1,000.

In 10 years, your $1,000 investment will have grown to $2,159. Your money more than doubles without you doing anything but watch it grow!

See why your age is on your side.

The sooner you start investing, the sooner you have the power of compounding working for you.

Now let's see what happens when you get more active with your savings by adding to your investments every month. Even $25 invested regularly can make a difference. 



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