Compound Interest – 8th Wonder of the World

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Albert Einstein once stated that: “Compound interest is the eighth wonder of the world. He who understands it earns it… he who doesn’t… pays it.”

How can you get compound interest to work in your favour? Firstly you need to check whether your investment has automatic compound interest built in, and will the interest be compounding daily, monthly or yearly? If no automated compound interest is in your contract, you can simply draw out your profit and re-invest which will give you the same effect as compounding, except that you will have to keep monitoring your investment to make sure you take advantage of the opportunity as it arises.

How long will it take you to double your investment with compound interest? That really depends on the interest rate you are earning. Let’s assume you earn 7% per annum and your investment is set to compound monthly, it would take you 10 years to double your investment.

An investment that gives you 14% per annum would mean that you double your investment in 5 years.

However, there are not that many investments that do not offer you over 10% per annum, unless you are willing to invest tens of thousands of dollars.

There is always an exception and I have found the Exclusive Investors Club, where you can invest as little as $500 and they offer a 6-month legal investment contract with the company (that is a 40-year-old privately owned real estate development and investment company, started in 1977). At the end of 6 months, you have earned 50% profit, plus you get your investment capital back. All this is possible because instead of treating you as an individual investor they allow you to leverage on the collective power of the club, meaning that the interest you receive will be exactly the same as a member who invested the maximum of $250,000.

So let’s look at an example of investing $1000 and re-investing each time you have earned an additional $500 to get the compounding effect on your investment. After 6 months your investment is worth $1500 and at the end of 12 months, you have an investment value of $2000. You have doubled your investment in a year, but by the end of 24 months your investment is worth $5000 and then by the end of 36 months you have an investment of $13500.

In summary, your initial $1000 has grown by 1350% in 3 years, so imagine what would happen if you added $500 additional as you could afford it.

The Club provides you with real options to change your financial future. If you would like to know more please contact me via email at or WhatsApp me on +27824131604. You can also Skype me on richsimmondsza







About RichSimmondsZA

Retired but still Disruptive
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