A basic principle of investing is compound interest! Basically it is where you invest for the long term and essentially earn “interest on your interest”!
For example, lets pretend you have £50,000 in a pension and leave it invested for 25 years, earning 4% per year. Here are the results:
Simple interest: £100,000 (£50,000 increase)
Compound interest: £135,688.26 (£85,688.26 increase)
Meaning your money is now worth £35,688 more by “compounding your returns”!
The morale of the story: Start young and let your money work its magic for you! Is it not time to make your money work as hard as you do? Get in touch with your local experts and build your very own Financial Fortress!