Plan your financial future with our compound interest calculator
$343,778
$130,000
$213,778
The anticipated annual percentage increase in your investment's value. Historical stock market returns have averaged around 7-10% annually over the long term, though past performance doesn't guarantee future results.
The length of time you plan to keep your money invested. Longer investment periods typically allow for more growth through compound interest and can help smooth out market volatility.
The process where your investment earnings generate additional earnings over time. This powerful concept helps explain why starting to invest early can lead to significantly larger returns.
Ownership shares in companies that can provide capital appreciation and dividends. Generally higher risk but potential for higher returns.
Loans to governments or corporations that pay regular interest. Typically lower risk but offer lower potential returns than stocks.
Exchange-Traded Funds that track indexes, sectors, or commodities. Offer diversification and typically have lower fees than mutual funds.
Professionally managed investment pools that can include stocks, bonds, and other securities. Good for diversification but may have higher fees.
Property investments that can provide rental income and appreciation. Can offer good returns but requires more capital and active management.
Certificates of Deposit from banks that offer guaranteed returns. Very low risk but also lower returns compared to other investments.
Investing a fixed amount regularly, regardless of market conditions. This strategy can help reduce the impact of market volatility and emotion-driven decisions.
Spreading investments across different assets to reduce risk. The old saying "don't put all your eggs in one basket" applies perfectly to investment strategy.
Focusing on long-term growth rather than short-term market movements. Historical data shows that longer investment periods tend to smooth out market volatility.