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How Often do Mutual Funds Compound or Dividend?

How often do mutual funds compound is a question that gets asked by many novice investors, who don’t completely understand the structure of this type of investment. A straight forward comparison of how compound interest works and the way the term may be applied might be the best way to understand the concept.

Compound interest is basically interest that continues being earned on an original sum of money invested along with the previous interest for a specified length of time.

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Your First Million Is the Toughest

I once heard someone say that earning his first $10,000 was much more difficult than earning his last $1,000,000. It may not seem to make a lot of sense, but when you understand compounding interest it makes more sense. And the end result can be even more amplified if you use leverage to your advantage.

Here are a few charts that showcase how many years it takes to reach each $1 million threshold given that you regularly invest Continue article...

How much interest do you earn on one million dollars?

A lot of people end up at my site after searching on the question “How much interest do you earn on one million dollars?”

So, I’ve decided to give them a proper answer: How much interest do you earn on a million dollars? The answer is, of course, it depends.

It depends on several factors including: What is the interest rate? Over what period of time? How often is the interest calculated and paid during the period?

What is the interest rate? Obviously the Continue article...

Compound Interest – The Most Powerful Force in the Universe

What did Albert Einstein, well known for being smarter than the average cat, claim to be the most powerful force in the universe? … Compound interest!

Compound Interest has also been called the eighth wonder of the world and the greatest mathematical discovery of all time.

Fortunately for the rest of us, you don’t have to be a genius to understand compound interest. In fact, it’s pretty simple.

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