We have all heard the quotes about compound interest and how it’s one of the wonders of the world.
It is overused and even annoying at times to keep hearing it.
Everything in life compounds, your focus on achieving a particular goal, the energy spent pursuing that goal, and your efforts in pursuit of the goal.
It’s very hard in the beginning, and with the compounding of your focus, energy, and efforts, it gets easier and you ultimately achieve your desired goal.
It is like a snowball that runs down a mountain covered with snow, the snowball gets bigger and bigger as it’s going down the mountain and at a faster speed.
It gathers momentum.
Mass X Velocity = Momentum.
Money works the same. When it compounds over time it grows rapidly and it creates momentum in your wealth strategy.
What is completely missing from the compound interest discussion is to understand that you can be on the correct side of a compound interest equation, or on the wrong side of a compound equation.
Most people do not realize that they are on the wrong side of a compound interest equation.
Look at this example.
If you double $1.00, 20 times, you will end up with $1,048,576.00
Powerful.
What if you were taxed 25% every time the $1.00 was doubled?
You would end up with $72,570.64.
You end up with approximately 93% less money.
See how destructive it can be to be on the opposite side of a compound interest equation.
Your parents, schools, universities, your government, and Wall Street never told you this.
What if in 1 move you can reposition your capital in a vehicle that would compound your capital tax-free and you can access your capital tax-free to keep growing your business and investment portfolio?
Disclaimer and Waiver
Michiel Laubscher & Laubscher Wealth Management LLC is not an investment advisor and is not licensed to sell securities. None of the information provided is intended as investment, tax, accounting, or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement, of any company, security, fund, or other offerings. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information contained herein is at your own risk. The content is provided ‘as is’ and without warranties, either expressed or implied. Michiel Laubscher & Laubscher Wealth Management LLC does not promise or guarantee any income or specific result from using the information contained herein and is not liable for any loss or damage caused by your reliance on the information contained herein. Always seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, or other content.
