The Power of Compound Interest

[DisciplinedSaver101]

If you were to save $1 every day from the day you were born until you turned 65, you would save $23,725. That's how many days there are in 65 years. However, if you were to invest that money in a basic S&P 500 Index Fund (which anyone can easily do), at age 65 you would have about $3 million.

At first I was skeptical about this, so I looked up historical returns of the S&P 500 Index and ran the numbers, and sure enough it's true.

[Retired To Win]

Dividend Reinvesting Compounds Too!

My wonderful experience with compounding comes from the reinvestment of my stock dividends. I started with $143,000 in 2009 from the sale of all my mutual funds and started investing the money in high-dividend yielding stocks. Right now, I'm over $300,000 book value in my portfolio AND I have an annual dividend income stream in excess of $28,000 -- which can get reinvested!

Retired To Win

making the most of my time and my money