@charlesschwabcorp: There's one thing the best investors understand, but some people overlook. It's the power of compounding. Investments can earn interest, which you can reinvest. If you do, you earn interest on that interest too. It's called compound interest and it's a powerful way to grow a portfolio over time. Here's how it works. Let's say there are two people: Person A and Person B. They both start with $10,000. Both invest it over the next 30 years. Same investment. Same 7% annualized return. Same 30 years. The only difference? One small decision. Every year, Person A earns about $700 in interest and takes it out. His $10,000 never really grows. After 30 years, he's made about $21,000 on top of the money he invested. Person B does the opposite. He reinvests his $700. So after the first year, he has $10,700. The next year? He earns 7% on that $10,700, or $749. And every year after that he's earning on a bigger number. After 30 years, Person B has around $66,000 more than his initial ten grand. Same money. Same investment. Same time. Completely different outcome. The difference is simple. Person A took out what he could. Person B let it grow. Compounding means your money makes money and then that money makes more money. Remember, investing isn't risk-free, and outcomes can vary. But if there's one thing to take away, time is your biggest advantage. #compoundinterest #investing #personalfinance (0726-A2GL)

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Thursday 13 August 2026 15:50:30 GMT