Newsletter   •   Quarter 1   •   2021

THE MAGIC POWER OF Compound interest

The real route to riches is to set aside a portion of your money and invest it, so that it compounds over many years. That's how you become wealthy while you sleep.
What exactly is compound interest?
  • Year 1 – your money earns interest.
  • Year 2 – you earn interest on your original money PLUS you earn interest on the interest earned in year 1.
  • Year 3 – you earn interest on your original money PLUS you earn interest on the interest earned in year 1 PLUS you earn interest on the interest earned in year 2.

The result over time has a snowball effect, where your money grows quicker and quicker the longer it is invested.

The above graph illustrates the powerful effect compounding can have on the investment returns of your portfolio. The longer you can leave your investment, the larger it grows and the bigger the jumps in growth become.

Remember, always think long term.

KEEP YOUR WILL UP TO DATE

We are in the middle of a pandemic and life is currently unpredictable. Around us, people are getting ill and sadly we are losing people that are close to us or that we work with.

Now is the time to be cautious and to think about your family and those that would be left behind were something to happen to you, or if you died.

Your Last Will and Testament lets you decide who the beneficiaries of your estate should be and what should be done with your assets and liabilities when you die.

If your Will is not valid or up to date:

  • Your wishes will not apply.
  • Dependants may be excluded.
  • Resolving your deceased estate will be cumbersome, lengthy and costly.
  • Your dependants may suffer financial hardship while finalising your deceased estate.

Ensure that your Will is always up to date.

UPDATE YOUR WILL NOW

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