Imagine you had a penny that doubled in value every day for a month.
Sure, after a week, you’d only have a paltry sixty-four cents. That’s not even enough to buy something off the dollar menu at your favorite fast-food joint. After another two weeks, you’d have less than $10.
But if you can hold out for just two more weeks, the doubling power will turn that starting penny into $1.3 million dollars.
- Do You Own Any of These Toxic Stocks?
Investing legend Louis Navellier just released a list of 250 toxic stocks to SELL NOW.
Some will drop even further from here.
Other are “zombie” stocks that will take years to recover.
Some won’t survive. 10 minutes is all it takes to give your portfolio a complete checkup and sleep easier knowing you don’t own any of these ticking time bombs.
That’s the power of compounding.
Now, we don’t have magic pennies (that I know of). But we do have the next best thing: Dividend stocks.
When companies pay their shareholders money, investors who use the proceeds to buy more share are able to compound their wealth over time. While not as quickly as a magic penny, over the course of years, this process can make a major difference for your investment returns. And over the course of decades? It can turn a few thousand dollars into over a million.
It’s a strategy explaining why everyday folks like teachers and janitors, often earning less than the average American family, can amass a multi-million dollar nest egg to leave for charity when they pass on. Harnessing this power takes a little time and effort, but once in place, the compounding power allows your money to most effectively work for you.