Summary of Make Compound Interest Work for You

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Summary of Make Compound Interest Work for You

Interest earning interest earning interest: that is the power of compounding. Compounding interest can help the value of your investment increase the longer you hold it. While interest is taxed as regular income, it is possible to soften the tax bite by investing in tax-deferred retirement plans and annuities. To get the most out of compounding interest, invest early, invest often, and reinvest your earnings.

Practical Ideas I Can Start with Today

  • Set up a dividend reinvestment plan with a stock or mutual fund.
  • Research tax-deferred retirement plans and other investments, on my own or with the help of a financial advisor.
  • Set up an automatic savings plan(s) at my financial institution.

What you have learned

  1. Simple and Compound Interest
  2. Make Compounding Work for You
  3. Compound Interest Formula
  4. Compounded Interest and Taxes

Find out what you have learned