Sign up to get updates from us
This episode is going to talk about the "Miracle of Compound Interest". Financial advisors constantly use compounding interest calculators to project and predict future values for their clients. The problem with that is that stocks, bonds, and mutual...
This episode is going to talk about the "Miracle of Compound Interest".
Financial advisors constantly use compounding interest calculators to project and predict future values for their clients. The problem with that is that stocks, bonds, and mutual funds don’t compound interest. In fact, no investment does. Stocks don’t compound interest. They appreciate and they depreciate in value. That’s not the same as compounding interest.
Understanding this truth also sort of demolishes the entire use of the phrase, “the miracle of compound interest” (supposedly by Einstein), as it relates to investments. It’s simply not applicable. Compound interest calculators, therefore, are generally used as a marketing tool to sell investments. They are not real predictors of what is going to happen and are generally a bad way to choose an investment. Calculations and projections are not a good substitute for real knowledge about an investment.
Curtis’s motto is that what you learn today and how you position yourself will determine your future financial well-being 5, 10, 20 years from today. To learn more about how to manage your wealth in a practical way, visit www.practicalwealthadvisors.com
Links and Resources from this Episode
Special Listener Gift
Schedule a 15-Minute Call with Curtis
Free Ebook Financial Planning Has Failed
Show Notes
Review, Subscribe and Share
If you like what you hear please leave a review by clicking here
Make sure you’re subscribed to the podcast so you get the latest episodes.
Curtis and Lisa explore turning your talents into revenue. She tells us her story from corporate to full-time business owner. Curtis’s motto is that what you learn today and how you position yourself will determine your future financial well-being...
Curtis and Kyle Christenson explore the natural tendencies that keep people stuck financially. What can you do to become financially independent? Check it out in this episode! Curtis’s motto is that what you learn today and how you position yourself...
Curtis has the privilege of being interviewed on Financial Thursday Radio Show in Atlanta. He discusses the accumulation theory vs the velocity method. He talks about the practical blocks of how to make money. You will learn Curtis’ wealth rules,...
Curtis and David discuss how you can use social media to expand your business and get your message heard. David Simons is an entrepreneur and media enthusiast who utilizes his offline and online skills to promote brands, increase businesses, support...
