What compounding does to accounts, even at a modest 4 – 6% return is double the money in a predictable fashion every 5 -7 years. At 6% it out performs the market, throughout market history.
Example: Investment of $500,000
- An investment in the S&P 500 over the market’s history would have produced $32,852,000 today.
- Compounding with the same investment at 6% would have yielded $84,648,000.