Compound Interest; Is it really the most powerful force in the universe?

One of the most brilliant minds of the early 20th century, Albert Einstein, famously once said,

'Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it. Compound interest is the most powerful force in the universe.'

Einstein’s comments were true. Saving for longer should mean that you reap the rewards and benefits that compound interest brings you.

The table below is a good example of how compound interest works over a 3 year term in a Cash ISA presuming you make 6% a year interest and there are no charges, so imagine the below table over a 30+ year period that covers your pension. In general terms, the earlier you start saving, the better your pension fund or savings should be over the longer term.

Fernleigh Wearden & Co are able to help you start or continue saving, whether you are employed, self-employed, or retired. We can help if you have left a previous company and you have not done anything with your existing pension, or simply want to start paying into a new ISA or pension. We have been helping people in Preston, Lancashire do this for a number of years.

Fernleigh Wearden & Co are specialists in long term financial planning. If you are thinking of planning ahead for retirement, or are about to retire and want to know about your options, please do get in touch

Find out how we can help you, click here to contact us.