Sentences with phrase «term effects of compound interest»

Most of us have probably seen a simple chart showing the long term effects of compound interest: Simply save $ X for Y number of years at a certain growth rate, and BAM!

Not exact matches

Zaino, who counsels the Millennial children and grandchildren of his primary client base, says, «Younger investors who can't handle the risk associated with stocks are missing out on significant long - term growth through higher returns and the positive effects of compounding interest.

Compound interest — earning interest on interest — can have an enormous ballooning effect on the value of an investment over the long term, and lift the overall returns on your portfolio.

However, the effects of compound interest and long term saving can exponentially increase savings overtime.

This long - term strategy will improve the effect of compound interest due to the higher, and more reliable returns.

Compound interest — earning interest on interest — can have an enormous ballooning effect on the value of an investment over the long - term.

As a quick refresher, compound interest is earning interest on interest which can have an enormous ballooning effect on the value of an investment over the long term, and lift the overall returns on your portfolio.

Savings rates are displayed in terms of APY to indicate the effective annual - interest return when taking the effect of compounding interest into account (assuming that the deposit balance does not change.

Plus saving now for your longest term needs (i.e. retirement) will make getting to your goal so much easier, due to the remarkable effects of compounding interest (that's when your principal earns interest, and then your interest also earns interest).