The Magic of Compounding

Send your questions and comments here!In this episode, Mike demonstrates how annual returns and time spent invested interact to produce unbelievable results which seem like magic. He peels back the curtain on the magic of compounding, including an in-depth discussion of how to make it work for you instead of against you. He highlights how each percentage point makes a tremendous difference in long-term investing, which is why you should understand how expense ratios and financial fees impact your returns. In this episode, Mike provides actionable insights to empower you toward taking control of your financial plan and wellness!TakeawaysThe magic of compound interestAnalogy of the lily pad taking over the pondRule of 72 for estimating doubling timeImportance of time in the marketUsing a compound interest calculatorNominal vs real returns (and why you should care)Why 1.5% is a big dealReferencesCompound Interest CalculatorPassive Fund InformationUnderstanding Expense RatiosMorningstar: When Do Active Managers Win?Vanguard's VOO Hits 1 Trillion DollarsHow Much Does a Financial Advisor Cost?In Defense of AUM FeesMusic: Perpetual Motion by Amarent via FMA (public domain)Contact: [email protected] the show